Working Paper: CEPR ID: DP1081
Authors: Dennis J. Snower
Abstract: The paper surveys unemployment policies for advanced market economies and evaluates them by examining the predictions of the underlying macroeconomic theories. The basic idea is that, for the most part, different unemployment policy prescriptions rest on different macroeconomic theories, and our confidence in the prescriptions should depend - at least in part - on the ability of these theories to predict some salient stylized facts about unemployment behaviour. The paper considers four types of policies: laissez-faire, demand-management, supply-side, and structural.
Keywords: unemployment policies; unemployment; laissez faire; demand management; supply-side policies; structural policies
JEL Codes: E32; E63; J21; J23; J32; J41; J51; J64; J65; J68
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Laissez-faire policies (P16) | long-run equilibrium unemployment (J64) |
| Demand-management policies (E64) | short-run unemployment (J64) |
| Supply-side policies (E65) | worker productivity (J29) |
| Supply-side policies (E65) | employment (J68) |
| Structural policies (J08) | unemployment (J64) |