search query: @author Wilkinson, F. / total: 4
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| Author: | Michie, J. Wilkinson, F. |
| Title: | Wages, government policy and unemployment |
| Journal: | Review of Political Economy
1995 : APR, VOL. 7:2, p. 133-149 |
| Index terms: | UNEMPLOYMENT KEYNESIAN SCHOOL PAY |
| Language: | eng |
| Abstract: | In this paper we question the usefulness of what has become the new textbook orthodoxy - the "new Keynesian" NAIRU theory. We then discuss the impact of the policy developments that follow from this ortodoxy, and argue that NAIRU theory has resulted in greater, not reduced, unemployment. Consequently, orthodox economic theory has added an upward twist to the stagnationist, high-unemployment ratchet. We argue that one reason for this unemployment problem is that government policy has been misguided, both at the EU level and within most of the individual member states. Contrary to the now orthodox policy prescriptions, the rising unemployment in Europe has not been due to too high wages, over-generous benefits or labour market rigidities, but rather stems from the irrelation of policies and deindustrialization. |
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