Abstract
This paper analyzes the determinants of the European Commission’s estimates of the non-accelerating inflation rate of unemployment (NAIRU) for 14 European countries during 1985–2012. The NAIRU is a poor proxy for ‘structural unemployment’. Labor market institutions – employment protection legislation, union
density, tax wedge, minimum wages – underperform in explaining the NAIRU, while cyclical variables –
capital accumulation and boom-bust patterns in housing markets – play an important role. This finding is
policy-relevant since the NAIRU is used to compute potential output and structural budget balances and,
hence, has a direct impact on scope and evaluation of fiscal policies in Europe.
| Original language | English |
|---|---|
| Pages (from-to) | 883-908 |
| Number of pages | 26 |
| Journal | Journal of Policy Modeling |
| Volume | 39 |
| Issue number | 5 |
| DOIs | |
| Publication status | Published - 01 Sept 2017 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 1 No Poverty -
SDG 8 Decent Work and Economic Growth -
SDG 10 Reduced Inequalities -
SDG 11 Sustainable Cities and Communities -
SDG 17 Partnerships for the Goals
Fields of science
- 502 Economics
- 502049 Economic history
- 504027 Special sociology
- 502027 Political economy
- 506013 Political theory
JKU Focus areas
- Social Systems, Markets and Welfare States
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