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Study Of European Unemployment Problem

Posted on:2008-12-03Degree:DoctorType:Dissertation
Country:ChinaCandidate:Q WuFull Text:PDF
GTID:1119360242473041Subject:World economy
Abstract/Summary:PDF Full Text Request
There is employment and there will be unemployment. There are a lot of reasons producing the unemployed. In regard to the individual, the result of unemployment loses the source of the income. The right of labor and survival can not get guaranteed. At the same time, since the whole society of the unemployment rate increases, it can give the whole nation and the society bringing the rigorous problem. In economy, the unemployment rate is too high and the employment lacks. Thus, it is sure to cause the purchasing power decreasing and consumption lacking. One of the four greatest links works wrong, and it will cause the whole operation of the social production doing wrong. Furthermore, the people' s basic rights of work and survival are threatened and can not get guaranteed. It may lead to the turbulence of the society.Since 70' s, the unemployment in the United States has the more periodic characteristic. By contrast, the unemployment in Europe presents the trend of ascension. The difference of the unemployment rate between Europe and the United State appears bigger and bigger. According to the currency school' s "the hypothesis of the natural unemployment rate" , we can get one kind of the natural unemployment rate which is suitable with the actual economic variable. Its level is decided by the economic system by itself. It has the relative stability and isn' t affected by the actual unemployment level. When the unexpected supply and demand varieties cause the actual unemployment rate deviating from the level of the natural unemployment rate, this kind of deviation can stimulate the variety of the inflation rate. Finally, the actual unemployment rate returns to the level of the natural rate. Since Euro started in 1999, the European inflation rate always keeps stable. Now EU has fundamentally realized the warning target of 2% which the European Central Bank confirms. Verifying the realistic circumstance of EU by using this theory, we can get the unemployment rate should return to the level of the natural rate after the inflation rate attains a stable low level. But why is the level of the natural unemployment rate in EU so high? In fact, the natural unemployment rate is not the constant. When the labor market exists the market obstacles that the factors deciding the natural unemployment rate occur to variety, the natural unemployment rate also changes. This paper thinks the main market obstacles which causes the unemployment rate so high for more than 30 years in EU are the following ones:Labor wage tax wedge. Deciding the demand of the labor force is the total amount of wages that the enterprises pay, but is not the actual income of the labor force. The government levies the labor wage tax to the enterprises. If the government increases the tax rate, the enterprises can increase the cost that the enterprises employ the labor force, and decrease the demand of the labor force. Thus, the natural unemployment rate rises.Lowest wage. If the lowest wage is settled too high, the employment scale may be lower than the employment scale of the market wage level. The rise of lowest wage can affect the employer' s decision of hiring labor force. Then the natural unemployment rate goes up.Compulsory employment protection measures. Compulsory employment protection produces the non-wage labor force cost that decreases companies' profits and therefore causes the descent of the output and the employment. If there is other production factors which can substitute the labor force, it will produce the substitute effect. It will reduce the demand of the labor force and the natural unemployment rate goes up.The Negotiation about wage and employment. The labor union' s function primarily improve its member' s the wage level and guarantee the member' s employment. The labor union' s negotiation theory does a lot of researches. The theory thinks the labor union inclines to increase the wage level of its members(namely the insider) above the clear market level. When the economy is weak, the labor union inclines to guarantee the insider' s employment. Thus the outsider becomes the main shock target in the depressed period of economy. Therefore, when the labor union organization is stronger in the economy, the wage that the collective negotiation decides is higher. It makes the supply curve of the labor force descending. The desired labor force demand is smaller than the desired labor force supply. The natural unemployment rate rises.Unemployment insurance system. When the individual is in employment, he generally takes out the part of the wage to pay the unemployment insurance. When he is unemployed, he can receive the unemployment benefit in the certain term. The unemployment insurance system affects the natural unemployment rate by the below mechanism: If the level of unemployment insurance is higher, the term of the unemployment insurance received is longer and unemployment insurance ratio levied is higher, its difference of the effect is smaller to a worker between the unemployed and the employed. Thus the unemployed lowers the motive of positively looking for a job. The unemployed time increases. The unemployment rate of the whole society rises.The hystersis of the unemployment. This factor primarily explaines why the EU unemployment is so long-lasting. When the unemployment rises, a part of the insiders who were originally protected by the labor union become the outsiders because of the unemployment and are no longer protected by the labor union. At this time, the labor union only guarantees the less insiders in employment. Moreover, their manpower capitals are broken, many people after unemployment may lose the work's ability, the confidence and the possibility of training again. They become the long-term unemployed population. this part of people are very difficult to be in employment again even if the economy recover prosper. Thus the natural unemployment rate of the whole society may go up.The thesis is divided by four parts.Part 1 narrates the paper' s research problem, research object, research method, research construction, creative point, the problem that need further research, and theoretical meaning & realistic meaning. And this part detailedly sums up and evaluates domestic and international researches about the unemployment problem of EU after 70' s. Thus lay the foundation of studying the unemployment problem of EU.Part 2 detailedly introduces the unemployment concept , the statistics method and the unemployment concept & the statistics method of Eurostat. Then this part primarily adopts the method of the descriptive statistics and analyzes the whole expression, the structural characteristic and the national difference of the unemployment problem of EU for these years. It provides the realistic background for studying unemployment problem of EU. Part 3 is the core content of the paper. On the base of detailedly combing the evolution of the unemployment theories, the part proposes thebasic analysis frame of studying the unemployment problem of EU-themodel of natural unemployment. From the market obstacle, the part analyzes the unemployment problem of EU. The part not only analyzes the fact of EU' s high unemployment for these years from the defects of the labor market institution and the unemployment insurance institution but also analyzes the EU' s enhancing high unemployment from the factors of the path dependence. Then the part analyzes the unemployment circumstance of the main member countries of EU in order to further argue the paper' s research result.Part 4 mainly analyzes some policies of harnessing the EU' s unemployment problem for these years. Finally, combining with the actual circumstance of our country, the paper put forward some experience which can provide our country teaching.
Keywords/Search Tags:EU high unemployment rate, long-lasting, natural unemployment, market obstacle
PDF Full Text Request
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