Abstract
The paper summarizes the principal empirical findings of the European Unemployment Program. It draws on 10 country studies which utilize the macroeconomic framework set out by Sneessens and Dreze (1986). The main conclusions are as follows: (i) a major problem in Europe is that productivity gains are quickly absorbed into wages and the effect of unemployment on wage settlements is generally weak; (ii) a wage-price-productivity spiral means the European economies are inflation-prone; (iii) demand pressures spill over into the balance of payments rather than leading to price increases; (iv) the major proximate determinant of employment in the 1 980s is the level of effective demand.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
