The causes and consequences of long-term unemployment in Europe

Stephen Machin and Alan Manning

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: One of the most striking features of European labour markets is the high incidence of long-term unemployment. In this paper we review the literature on its causes and consequences. Our main conclusions are that: the rise in the incidence of long-term unemployment has been ''caused'' by a collapse of outflow rates at all durations of unemployment while the long-term unemployed do leave unemployment at a slower rate than the short-term unemployed, this has always been the case and their relative outflow rate has not fallen over time there is no evidence that, for a given level of unemployment, the incidence of long-term unemployment has been ratcheting up over time once one controls for heterogeneity of the unemployed, there is little evidence of outflow rates that decline over a spell of unemployment While these findings suggest that long-term unemployment is not a problem independent of unemployment itself, one should recognise that the experience of long-term unemployment is a horrid one for those unfortunate enough to experience it.

JEL-codes: J01 R14 (search for similar items in EconPapers)
Pages: 41 pages
Date: 1998-07
References: Add references at CitEc
Citations: View citations in EconPapers (22)

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http://eprints.lse.ac.uk/20255/ Open access version. (application/pdf)

Related works:
Chapter: The causes and consequences of longterm unemployment in Europe (1999)
Working Paper: The Causes and Consequences of Long-Term Unemployment in Europe (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:20255

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