Unemployment Policy: Government Options for the Labour Market

There is substantial disagreement among policy-makers about how governments should respond to the problem of high unemployment. Thus far there has been little, if any, systematic attempt to evaluate the strengths and weaknesses of the main unemployment policies available to governments in market economies. Individual policy recommendations are usually made in isolation from one another. This book attempts to provide a balanced assessment of the various policy options, including the following: demand management versus supply-side policy, subsidizing employment and training, reforming labour market regulations and unemployment benefit systems, changing the structure of taxation and restructuring various welfare state provisions. The book also examines the political economy of unemployment policy, the policy implications of technological change and international trade, the relation between unemployment and productivity growth, and the significance of job reallocation for unemployment policy.