Disoccupazione in Europa:fatti e proposte

Abstract

This paper evaluates the rise in unemployment due to both labour force and employment components. In Europe, the rise in unemployment mostly re­flects the weakness of employment response to activity levels, as when la­bour hoarding occurs. Yet, the relevance of labour force cannot be neglected whenever unemployment persistence is explained by turnover costs that ne­cessarily rely on labour force heterogeneity. Growth possibilities were redu­ced in Europe by excessive market regulations both in product and labour markets, so that removing rigidities in labour market only is economical1y insufficient and politically untenable. Finally, employment growth has also been damaged by excessive tax rates on labour, stemming from different combinations of social security and in come taxes. JEL Codes: E24