The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Unemployment and Hours of Work, Cross Country Differences

  • Richard Rogerson
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2240

Abstract

Since the 1960s labour market outcomes among the world’s richest economies have changed dramatically, especially in terms of unemployment rates and time devoted to market work. This article summarizes the evidence regarding these changes and discusses some of the explanations that have been proposed for why these labour market outcomes have evolved so differently across economies.

Keywords

Barriers to entry Common shock Cross-country differences in unemployment and hours worked Employment protection Home production Hours worked Income support Labour market regulation Layoffs Leisure Neoclassical growth theory Product market regulation Productivity growth Skill-biased technical change Technical change Time use Unemployment Unemployment insurance Wage dispersion Wage rigidity Wage setting institutions 
This is a preview of subscription content, log in to check access

Bibliography

  1. Alesina, A., E. Glaeser, and B. Sacerdote. 2005. Work and leisure in the US and Europe: Why so different? In NBER macroeconomics annual, vol. 20, ed. M. Gertler and K. Rogoff. Cambridge, MA: MIT Press.Google Scholar
  2. Alvarez, F., and M. Veracierto. 1999. Labor market policies in an equilibrium search model. In NBER macroeconomics annual, vol. 14, ed. B.S. Bernanke and J.J. Rotemberg. Cambridge, MA: MIT Press.Google Scholar
  3. Bentolila, S., and G. Bertola. 1990. Firing costs and labor demand: How bad is eurosclerosis? Review of Economic Studies 57: 381–402.CrossRefGoogle Scholar
  4. Bertola, G., and A. Ichino. 1995. Wage inequality and unemployment: United States vs. Europe. In NBER Macroeconomics annual, vol. 10, ed. B.S. Bernanke and J.J. Rotemberg. Cambridge, MA: MIT Press.Google Scholar
  5. Bertrand, M., and F. Kramarz. 2002. Does entry regulation hinder job creation? Evidence from the French retail industry. Quarterly Journal of Economics 117: 1369–1413.CrossRefGoogle Scholar
  6. Blanchard, O. 2005. The economic future of Europe. Journal of Economic Perspectives 18(4): 3–26.CrossRefGoogle Scholar
  7. Blanchard, O., and F. Giavazzi. 2002. Macroeconomic effects of regulation and deregulation in goods and labor markets. Quarterly Journal of Economics 117: 879–907.CrossRefGoogle Scholar
  8. Blanchard, O., and J. Wolfers. 2000. The role of shocks and institutions in the rise of European unemployment: The aggregate evidence. Economic Journal 110: 1–33.CrossRefGoogle Scholar
  9. Card, D., F. Kramarz, and T. Lemieux. 1999. Changes in relative structure of wages and employment: A comparison of the United States, Canada and France. Canadian Journal of Economics 32: 843–877.CrossRefGoogle Scholar
  10. Chang, Y., and S. Kim. 2006. From individual to aggregate labor supply: A quantitative analysis based on a heterogeneous agent macroeconomy. International Economic Review 47: 1–27.CrossRefGoogle Scholar
  11. Daveri, F., and G. Tabellini. 2000. Unemployment, growth and taxation in industrial countries. Economic Policy 15: 47–104.CrossRefGoogle Scholar
  12. Davis, S., and M. Henrekson. 2005. Tax effects on work activity, industry mix and shadow economy size: Evidence from rich country comparisons. In Labour supply and incentives to work in Europe, ed. R. Goméz-Salvador, A. Lamo, B. Petrongolo, M. Ward, and E. Wasmer. Northampton: Edward Elgar.Google Scholar
  13. Freeman, R., and R. Schettkat. 2001. Marketization of production and the US–Europe employment gap. Oxford Bulletin of Economics and Statistics 63: 647–670.CrossRefGoogle Scholar
  14. Freeman, R., and R. Schettkat. 2005. Marketization of household production and the EU–US gap in work. Economic Policy 20: 6–50.CrossRefGoogle Scholar
  15. Hamermesh, D., M. Burda, and P. Weil. 2007. The distribution of total work in the EU and the US. In Are Europeans lazy or Americans crazy? ed. T. Boeri. Oxford: Oxford University Press.Google Scholar
  16. Hopenhayn, H., and R. Rogerson. 1993. Job turnover and policy evaluation: A general equilibrium analysis. Journal of Political Economy 101: 915–938.CrossRefGoogle Scholar
  17. Hornstein, A., P. Krusell, and G. Violante. 2007. Technology–policy interactions in frictional labor markets. Review of Economic Studies 74: 1089–1124.CrossRefGoogle Scholar
  18. Krugman, P. 1994. Past and prospective causes of high unemployment. Economic Review of the Federal Reserve Bank of Kansas City 79(4th quarter): 23–43.Google Scholar
  19. Ljungqvist, L., and T. Sargent. 1998. The European unemployment dilemma. Journal of Political Economy 106: 514–550.CrossRefGoogle Scholar
  20. Ljungqvist, L., and T. Sargent. 2007. Do taxes explain European unemployment? Indivisible labor, human capital, lotteries and savings. Working paper, New York University.Google Scholar
  21. Marimon, R., and F. Zilibotti. 1999. Unemployment versus mismatch of talents: Reconsidering unemployment benefits. Economic Journal 109: 266–291.CrossRefGoogle Scholar
  22. Messina, J. 2006. The role of product market regulations in the process of structural change. European Economic Review 50: 1863–1890.CrossRefGoogle Scholar
  23. Mortensen, D., and C. Pissarides. 1999. Unemployment responses to skill-biased technology shocks. Economic Journal 109: 242–265.CrossRefGoogle Scholar
  24. Nickell, S., L. Nunziata, and W. Ochel. 2006. Unemployment in the OECD since the 1960s. What do we know? Economic Journal 115: 1–27.CrossRefGoogle Scholar
  25. Ohanian, L., A. Raffo, and R. Rogerson. 2006. Long-term changes in labor supply and taxes: Evidence from OECD countries, 1956–2004. Working paper no. 12786. Cambridge, MA: NBER.Google Scholar
  26. Olovsson, C. 2004. Why do Europeans work so little? Mimeo: Stockholm School of Economics.Google Scholar
  27. Pissarides, C. 2007. Unemployment and hours of work: The North Atlantic divide revisited. International Economic Review 48: 1–36.CrossRefGoogle Scholar
  28. Prescott, E. 2004. Why do Americans work so much more than Europeans? Quarterly Review of the Federal Reserve Bank of Minneapolis 28(1): 2–13.Google Scholar
  29. Prescott, E. 2006. The transformation of macroeconomic policy and research, 2004 Nobel Prize address. Journal of Political Economy 114: 203–236.CrossRefGoogle Scholar
  30. Pries, M., and R. Rogerson. 2005. Hiring policies, labor market institutions and labor market flows. Journal of Political Economy 113: 811–839.CrossRefGoogle Scholar
  31. Ragan, K. 2005. Taxes, transfers and time use: Fiscal policy in a household production model. Mimeo, University of Chicago.Google Scholar
  32. Rogerson, R. 2006. Understanding differences in hours worked. Review of Economic Dynamics 9: 365–409.CrossRefGoogle Scholar
  33. Rogerson, R. 2007. Structural transformation and the deterioration of European labor market outcomes. Working paper no. 12889. Cambridge, MA: NBER.Google Scholar
  34. Rogerson, R., and J. Wallenius. 2007. Micro and macro elasticities in a life cycle model with taxes. Working paper no. 13017. Cambridge, MA: NBER.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Richard Rogerson
    • 1
  1. 1.