Unemployment: Macroeconomic Performance and the Labour Market

In this broad survey of the subject of unemployment, the authors consider a number of key issues, such as why unemployment is so high and why it fluctuates so wildly; how unemployment affects inflation; and whether full employment can ever be combined with price stability. This book provides answers and explains the puzzling postwar history of the OECD countries. It integrates macroeconomics with a detailed micro-analysis of the labour market and shows how unemployment and inflation are affected by systems wage bargaining and unemployment insurance. For each issue it develops new relevant theory, followed by extensive empirical analysis, drawing on material from both Europe and America. The authors are leading world experts on the subject, and the book gives their definitive treatment. It is based largely on new research, but also incorporates the best of existing knowledge of economics. The rest of the book provides key elements for courses in macroeconomics and labour economics at advanced undergraduate levels. The basic aim of the book, however, is to provide the basis for better policy. As the book shows by learning from theory and experience we can greatly reduce the waste and misery of high unemployment. It should be a lasting contribution and a major source of reference for both scholars and students.