Blanchard, Olivier J., and Justin Wolfers, J., 1999, “The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence,” NBER Working Paper No. 7282.
Nickell, S., 1997, “Unemployment and Labor Market Rigidities: Europe versus North America,” Journal of Economic Perspectives 11 (3), pp. 55-74.
Prepared by Caroline Kollau.
Official statistics show a zero unemployment rate until the mid-1970s.
Apart from most countries in the EU, the set also includes a number of non-European countries as controls.
Blanchard and Wolfers also highlight the endogeneity problem.
This indexation scheme was originally introduction in 1921.
Every two years the government submits to the Chambre Parliament a report on developments in the economy and incomes. If necessary this report is accompanied by draft legislation to raise the level of the minimum wage.
Two trade unions have the nationally representative status required to establish collective agreements.
Luxembourg is not part of the original panel study by Blanchard and Wolfers.