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On Theories of Unemployment Persistence: A Quick Look at Recent Developments
Author(s) -
Fitoussi JeanPaul,
Cacheux Jacques Le
Publication year - 1988
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.1988.tb00132.x
Subject(s) - unemployment , clearing , economics , persistence (discontinuity) , section (typography) , business cycle , market clearing , macroeconomics , keynesian economics , computer science , engineering , finance , geotechnical engineering , operating system
The aim of this paper is to supply a theoretical explanation for the persistence of the high unemployment rates found particularly in Europe. For this purpose, the authors briefly review the major contending theories presently available, but conclude that market clearing analyses of the business cycle are ill‐suited to the case under examination. In the second section of the paper the authors offer a non‐technical summary of the main results of the non‐market clearing approach to macroeconomics, and in the third section discuss the microeconomic underpinnings of models with unemployment equilibria.