chapter  4
Growth and employment
Productivity gains versus demand constraints
ByPaolo Piacentini, Paolo Pini
Pages 33

The persistence of high unemployment levels in the major European countries, and the evidence of a small employment elasticity reflecting in an inadequate reabsorption capacity of the labour supply excess, even in the most favourable phase of the cycle, suggest a reconsideration of the schemes aimed at modelling the determination of aggregate employment balances.