chapter  5
33 Pages

The role of shocks and institutions in the rise of European unemployment: The aggregate evidence

You have download access for this chapter.

PDF 0.59MB

Figure 5.1 shows the evolution of unemployment in Europe since 1960. The figure plots average unemployment rates over 5-year intervals, starting in 1960, both for the OECDEurope as a whole (the line) and for 15 individual OECD-Europe countries.1 It shows the increase in the overall unemployment rate, from 1.7 percent in the early 1960s to 11.0 percent in the mid-1990s, together with the large dispersion in unemployment rates across countries, from 4.0 percent in Switzerland to more than 20 percent in Spain in the mid-1990s.