Employment and Unemployment in Europe. Factual and Theoretical Developments

  • Autori: Marinescu Cristian, Valimăreanu Ileana;
  • Conferință: The international e-conference “enterprises in the global economy”, 3rd edition, organizată de Universitatea Ovidius – Facultatea de Stiinte Economice în Constanța la data de
  • Publicare: Ovidius University Annals, Series Economic Sciences, Vol. 18, Nr. 2/2018, pag:148-154; 
  • Abstract
    The employment and unemployment approach has taken several steps, starting with the neoclassical theories of unemployment and ending with modern labor market theories. In this article, we aim to highlight the factual and theoretical developments in employment and
    unemployment in Europe

  •  Introduction
    The first step regarding the evolution of the unemployment concept was represented by the noclassical theories, according to which unemployment was either temporary, determined by the adjustment of supply on demand or voluntary unemployment when workers did not accept to work on a lower salary than the one expected.
    The second stage was Keynesian theory, which brought some theoretical changes to neoclassical models. Thus, in Keynes opinion, the labor market does not operate according to the same principles as the goods and services market where price is formed by the confrontation between supply and demand, since labor is not a commodity whose price can be set strictly
    commercially.
    Another stage in the evolution of unemployment theories is the Phillips Curve and Okan’s law.
    The contribution of Milton Friedman, who reformulated Phillips’s original attitude, has not been omitted, bringing the concept of the natural rate of unemployment into question. Friedman promotes the idea of a natural rate of unemployment, below which unemployment can never fall, regardless of the monetary policies applied. There are also more recent theories on unemployment, namely the differentiated wage theory developed by

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