TY - JOUR
T1 - The rise in UK unemployment
T2 - The search for an explanation
AU - Madsen, Jakob Brøchner
PY - 1994/1/1
Y1 - 1994/1/1
N2 - This paper suggests that the model used by Layard and Nickell to account for changes in unemployment is highly restrictive in that it imposes cross-equation constraints and neglects labour supply as a source of the increase in unemployment. A less restrictive model, which circumvents some of the problems encountered in the Layard-Nickell approach, is suggested as a tool to account for an unemployment path. Dynamic simulations with the model suggest that labour supply persistence, increased mark-up of prices over wages and low GDP growth have, in particular, contributed to the UK unemployment increase from 1967 to 1983.
AB - This paper suggests that the model used by Layard and Nickell to account for changes in unemployment is highly restrictive in that it imposes cross-equation constraints and neglects labour supply as a source of the increase in unemployment. A less restrictive model, which circumvents some of the problems encountered in the Layard-Nickell approach, is suggested as a tool to account for an unemployment path. Dynamic simulations with the model suggest that labour supply persistence, increased mark-up of prices over wages and low GDP growth have, in particular, contributed to the UK unemployment increase from 1967 to 1983.
UR - http://www.scopus.com/inward/record.url?scp=0041747131&partnerID=8YFLogxK
U2 - 10.1080/758525159
DO - 10.1080/758525159
M3 - Article
AN - SCOPUS:0041747131
SN - 0269-2171
VL - 8
SP - 251
EP - 265
JO - International Review of Applied Economics
JF - International Review of Applied Economics
IS - 3
ER -
