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Factors Affecting the Incidence of Long-Term Unemployment

  • Kenneth Walsh

Abstract

In this chapter, some of the factors which have had most influence on the recent growth in LTU are examined and any causal relationships explored as far as the available data permits. There are a number of key influences which have contributed most to the longer duration patterns of unemployment experienced by most of the 10 countries covered in this book. Foremost among these are the economic conditions, notably the severe recessions of the past decade and the parallel structural changes in industry and the demographic trends already introduced in Chapter 1 which have put extraordinary pressures on the labour markets of the countries concerned. In addition to these, less obvious factors will be discussed such as the potential influence of the payment and extent of unemployment benefits on the patterns of duration, though here there is apparently little evidence to provide firm support for any theory based on causality. Conclusions to date have been far from definitive and sometimes it is difficult to ignore the presence of certain prejudices both political and other, which have been the prime movers behind such results. Some more rational explanation is therefore attempted in this chapter.

Keywords

Labour Market Unemployment Benefit Unemployment Insurance International Perspective Unemployed Person 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 1.
    See Worswick, D. (ed.), The Concept and Measurement of Involuntary Unemployment (London: Allen & Unwin, 1976) andGoogle Scholar
  2. Joll, C. (ed.), Developments in Labour Market Analysis (London: Allen & Unwin, 1983).Google Scholar
  3. 2.
    The original reference is Phillips, A. W., ‘The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom 1861–1957’, Economica, vol. 25 (Nov. 1958).Google Scholar
  4. See also Eckstein, O. and Girola, J., ‘Long-Term Properties of the Price-Wage Mechanism in the United States 1891–1977’, Review of Economics and Statistics, vol. 60 (Aug. 1978).Google Scholar
  5. 3.
    See, for example, Bowers, J., Deaton, D. and Turk, J., Labour Hoarding in British Industry (Oxford: Blackwell, 1982) andGoogle Scholar
  6. Cooper, C. M. and Clark, J. A., Employment, Economics and Technology: the Impact of Technological Change on the Labour Market (Brighton: Wheatsheaf, 1982).Google Scholar
  7. 5.
    See Meager, N., Temporary Working in Britain: Its Growth and Changing Rationales (Brighton: Institute of Manpower Studies, 1985).Google Scholar
  8. 7.
    Barron, J. and Mellow, W., ‘Search Effort in the Labour Market’, Journal of Human Resources, vol. 14 (Summer 1979); Ehrenberg, R. and Oaxaca, R., ‘Unemployment Insurance, Duration of Unemployment and Subsequent Wage Gain’, American Economic Review, vol. 66 (Dec. 1976);Google Scholar
  9. Mortensen, D., ‘Unemployment Insurance and Job Search Decisions’, Industrial and Labor Relations Review, vol. 30 (July 1977) andGoogle Scholar
  10. sClassen, K., ‘The Effect of Unemployment Insurance on the Duration of Unemployment and Subsequent Earnings’, Industrial and Labor Relations Review, vol. 30 (July 1977).Google Scholar
  11. 8.
    Maki, D. and Spindler, Z. A., ‘The Effects of Unemployment Compensation on the Rate of Unemployment in Great Britain’, Oxford Economic Papers, vol. 27:3 (1975).Google Scholar

Copyright information

© Kenneth Walsh 1987

Authors and Affiliations

  • Kenneth Walsh
    • 1
  1. 1.Institute of Manpower StudiesUniversity of SussexUK

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