Spain has the most serious and persistent unemployment problem in Europe, with an unemployment rate that reached 24.6 percent in early 1994. This paper explores the characteristics of this unemployment problem, its causes, and provides a brief discussion of recent labor market reform measures and their likely Impact. A demographic shift in recent years has produced a large rise in female labor force participation and a decrease in agricultural jobs to which the economy has been unable to adjust. The effects of generous unemployment benefits and the large underground economy may explain 6–12 percentage points of the resulting unemployment, but the remainder must be explained by failures and rigidities in the labor market. The paper presents econometric evidence that unemployment displays hysteresis, and that wages are not responsive to changes in the unemployment rate. This evidence supports the claim that insider-outsider factors and rigidities in the legal structure of the labor market are responsible for much of the high unemployment rate. Recent reforms have improved the functioning of the labor market, but they are unlikely to be sufficient to reduce unemployment to single digit rates without further action.

The first comparative study of the politics of policy innovation in the field of unemployment. The contributors provide a thorough and lucid analysis of past government failures, and look to possible future strategies.

"Oxford Handbooks offer authoritative and up-to-date surveys of original research in a particular subject area. Specially commissioned essays from leading figures in the discipline give critical examinations of the progress and direction of debates, as well as a foundation for future research. Oxford Handbooks provide scholars and graduate students with compelling new perspectives upon a wide range of subjects in the humanities, social sciences, and sciences"--

Critically assessing the widely accepted view that the cause of unemployment is excessive labor market regulation and overly generous welfare state benefits, this book's chapters include both cross-country statistical analyses and country case studies.

In this new edition of his critically acclaimed book, Jon Elster examines the nature of social behavior, proposing choice as the central concept of the social sciences. Extensively revised throughout, the book offers an overview of key explanatory mechanisms, drawing on many case studies and experiments to explore the nature of explanation in the social sciences; an analysis of the mental states - beliefs, desires, and emotions - that are precursors to action; a systematic comparison of rational-choice models of behavior with alternative accounts, and a review of mechanisms of social interaction ranging from strategic behavior to collective decision making. A wholly new chapter includes an exploration of classical moralists and Proust in charting mental mechanisms operating 'behind the back' of the agent, and a new conclusion points to the pitfalls and fallacies in current ways of doing social science, proposing guidelines for more modest and more robust procedures.