Political and Economic Explanations for Unemployment: A Cross-National and Long-Term Analysis

@inproceedings{Korpi1991PoliticalAE,
  title={Political and Economic Explanations for Unemployment: A Cross-National and Long-Term Analysis},
  author={Walter Korpi},
  year={1991}
}
This article shows that the widely accepted supply shock and real wage gap explanation of increases in unemployment rates since 1973 has only limited empirical support. The causal factors behind unemployment are best understood by focusing on conflicts of interest in Western democracies, on the distribution of power resources between major interest groups and on strategies of conflict. Given economic constraints, from this perspective unemployment appears as the labour market expression of… CONTINUE READING