It is critical because average unemployment among young people is, in all countries of the region, much higher than average unemployment overall. In fact, in Latin America and the Caribbean the youth unemployment rate is twice the overall unemployment rate and three times the rate for adults; in some countries it is as high as five times the rate for adults over age 45. What is more, young peop...

N recent years, many countries have experienced “stagflation,” a period of high and rising inflation and unemployment. Over this time, higher inflation increasingly has come to be blamed for higher unemployment and reduced growth of real output. This contrasts sharply with previously held notions that there was either a long-run tradeoff between inflation and unemployment or a “natural rate of ...

This paper proposes a theory of optimal public expenditure when unemployment is inefficient. The theory is based on a matching model. Optimal public expenditure deviates from the Samuelson rule to reduce the unemployment gap (the gap between the current and efficient rates of unemployment). Such optimal “stimulus spending” is described by a formula expressed with estimable sufficient statistics...

This study has examined the impact of inflation on GDP and unemployment rate in Pakistan. It was a longitudinal study for the period in 2000-2010. The data has been taken from secondary sources. The study concludes that inflation insignificantly influences GDP and unemployment and the correlation is negative. The correlation between unemployment and inflation is positive i.e. 0.477 and is insig...

Extensions of unemployment insurance (UI) benefits have been implemented in response to the Great Recession. This paper measures the effect of these extensions on the unemployment rate using a calibrated structural model featuring job search and consumption-saving decisions, skill depreciation, and UI eligibility. The ongoing UI benefit extensions are found to have raised the unemployment rate ...

UNLABELLED Unemployment and health selection in diverging economic conditions: Compositional changes? Evidence from 28 european countries. INTRODUCTION People with ill health tend to be overrepresented among the unemployment population. The relationship between health and unemployment might, however, be sensitive to the overall economic condition. Specifically, the health composition of the u...

This paper examines the dynamic effects of government outlays on economic growth and the unemployment rate. Using vector autoregression and data from twenty OECD countries over three recent decades, we found: (1) positive shocks to government outlays slow down economic growth and raise the unemployment rate; (2) different types of government outlays have different effects on growth and unemploy...