Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

The Problem of the European Unemployment

08.05.2013
Annual Conference of the European Search and Matching Network at Johannes Gutenberg University Mainz

For decades, the problem of increasing and persistent European unemployment has been at the center of attention of European academics, policy makers, and the public alike. This was true in the earlier days, when oil price shocks hit the European economies in the 1970s. This is also true now, in the aftermath of the worldwide financial crisis.

The Annual Conference of the European Search and Matching Network, which takes place on May 15-17, 2013 at Johannes Gutenberg University Mainz (JGU), gathers together leading European and world labor economists to discuss the most up to date problems of the European labor markets and suggest ways for smooth and quick recovery from the crisis.

European unemployment is as diverse as the European countries themselves. How much unemployment one or another country has depends on many equally important factors. These are the strictness of employment protection regulation, generosity of unemployment benefits, situation on the markets for goods and services, financial markets and so on. Looking at the recent recession, differences in these factors have led to very different developments among the European economies. In the countries with mild labor market regulations, like the UK, unemployment has increased predominantly because firms were closing jobs, although job creation for surviving firms has not become much more complicated. In the countries with relatively tight employment protection, like France, there was not much closing of jobs by firms, but it has become increasingly more difficult to create new jobs. In the countries with traditionally strong unemployment support, like Scandinavian countries, the increase in unemployment could rather be caused by prolonged waiting for better times.

All of these countries had relatively stable markets, meaning that shocks such as the financial crisis would have detrimental effects but would not destabilize the entire economy. This general sound policy system has saved them from drastic jumps in unemployment. As a contrast, collapsing markets like the housing market in Spain or sovereign debt crisis in Greece were responsible for extremely high increases in unemployment in these countries. The reason for high increases in unemployment in Greece and Spain is therefore primarily to be sought outside of labor markets or labor market policies per se.

Interestingly, along with these negative developments there are also success stories, such as for instance the performance of Austria, Poland, or Germany. Taking the example of Germany, timely labor market reforms undertaken before the crisis, the Hartz reforms, together with innovative policies like working time accounts, and a quick recovery of exporting industries have led even to a decreasing unemployment rate during the recession.

Clearly, persistent differences in institutional arrangements and situations on goods and financial markets in different European countries do not permit copying a successful policy. Still, a thorough discussion of weak and strong sides of any possible policy enables us to advise on the most appropriate steps. Effective public employment agencies that were introduced as part of the Hartz reforms in Germany or working time accounts might turn out useful for other countries. Given that they helped Germany as a highly regulated country, they might be useful in other highly regulated countries as well. They might be useful for more seriously affected countries as well, but the primary policy objective in these cases should focus on outside the labor market. The forthcoming annual conference in Mainz is dedicated to provide a platform for developing these ideas further.

The European Search and Matching Network is a scientific organization that devotes its research to understanding the ways labor markets work and the challenges labor market policy faces in the modern global economy. It has been founded in late 2010 by a group of well-established leading young academics from France, the Netherlands, Spain, and the UK. As of now the network includes over 150 members of high-ranked universities from all over Europe and North America. Among its members are also two of the Nobel Prize winners in Economics of 2010: Dale Mortensen (Northwestern University; USA) and Christopher Pissarides (London School of Economics; UK), who have received the Nobel Prize for their essential contribution to modeling labor markets.

Further information:
Professor Dr. Andrey Launov
Junior Professor of Econometrics
Gutenberg School of Management and Economics
Johannes Gutenberg University Mainz (JGU)
D 55099 Mainz, GERMANY
phone +49 6131 39-23233
e-mail: andrey.launov@uni-mainz.de
http://www.empirical.economics.uni-mainz.de/115.php

Professor Dr. Klaus Wälde
Chair in Public Policy with a focus on Macroeconomics
Gutenberg School of Management and Economics
Johannes Gutenberg University Mainz (JGU)
D 55099 Mainz, GERMANY
phone +49 6131 39-20143
e-mail: klaus.waelde@uni-mainz.de
http://www.macro.economics.uni-mainz.de/
http://www.waelde.com
Weitere Informationen:
http://www.sam2013.uni-mainz.de/51.php (conference program) ;
http://sam.univ-lemans.fr/ (European Search and Matching Network)

Petra Giegerich | idw
Further information:
http://www.uni-mainz.de/

More articles from Event News:

nachricht In focus: Climate adapted plants
25.05.2018 | Leibniz-Institut für Pflanzengenetik und Kulturpflanzenforschung

nachricht Save the date: Forum European Neuroscience – 07-11 July 2018 in Berlin, Germany
02.05.2018 | FENS - Federation of European Neuroscience Societies

All articles from Event News >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Powerful IT security for the car of the future – research alliance develops new approaches

The more electronics steer, accelerate and brake cars, the more important it is to protect them against cyber-attacks. That is why 15 partners from industry and academia will work together over the next three years on new approaches to IT security in self-driving cars. The joint project goes by the name Security For Connected, Autonomous Cars (SecForCARs) and has funding of €7.2 million from the German Federal Ministry of Education and Research. Infineon is leading the project.

Vehicles already offer diverse communication interfaces and more and more automated functions, such as distance and lane-keeping assist systems. At the same...

Im Focus: Molecular switch will facilitate the development of pioneering electro-optical devices

A research team led by physicists at the Technical University of Munich (TUM) has developed molecular nanoswitches that can be toggled between two structurally different states using an applied voltage. They can serve as the basis for a pioneering class of devices that could replace silicon-based components with organic molecules.

The development of new electronic technologies drives the incessant reduction of functional component sizes. In the context of an international collaborative...

Im Focus: LZH showcases laser material processing of tomorrow at the LASYS 2018

At the LASYS 2018, from June 5th to 7th, the Laser Zentrum Hannover e.V. (LZH) will be showcasing processes for the laser material processing of tomorrow in hall 4 at stand 4E75. With blown bomb shells the LZH will present first results of a research project on civil security.

At this year's LASYS, the LZH will exhibit light-based processes such as cutting, welding, ablation and structuring as well as additive manufacturing for...

Im Focus: Self-illuminating pixels for a new display generation

There are videos on the internet that can make one marvel at technology. For example, a smartphone is casually bent around the arm or a thin-film display is rolled in all directions and with almost every diameter. From the user's point of view, this looks fantastic. From a professional point of view, however, the question arises: Is that already possible?

At Display Week 2018, scientists from the Fraunhofer Institute for Applied Polymer Research IAP will be demonstrating today’s technological possibilities and...

Im Focus: Explanation for puzzling quantum oscillations has been found

So-called quantum many-body scars allow quantum systems to stay out of equilibrium much longer, explaining experiment | Study published in Nature Physics

Recently, researchers from Harvard and MIT succeeded in trapping a record 53 atoms and individually controlling their quantum state, realizing what is called a...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

In focus: Climate adapted plants

25.05.2018 | Event News

Save the date: Forum European Neuroscience – 07-11 July 2018 in Berlin, Germany

02.05.2018 | Event News

Invitation to the upcoming "Current Topics in Bioinformatics: Big Data in Genomics and Medicine"

13.04.2018 | Event News

 
Latest News

In focus: Climate adapted plants

25.05.2018 | Event News

Flow probes from the 3D printer

25.05.2018 | Machine Engineering

Less is more? Gene switch for healthy aging found

25.05.2018 | Life Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>