Hostname: page-component-586b7cd67f-g8jcs Total loading time: 0 Render date: 2024-11-25T07:48:41.007Z Has data issue: false hasContentIssue false
  • English
  • Français

Unidentified Floating Unemployment (UFU) and the Specification of the UV-Curve

Published online by Cambridge University Press:  17 August 2016

Chris de Neubourg
Get access

Extract

Conceptually, unemployment may originate in various types of (temporary) imbalances on the labour market. Five types of origins are broadly to be distinguished (given the real wage level and the volume of labour supply):

Uk: unemployment originating in very short term — seasonal — fluctuations in economic activity;

Ul: unemployment originating in the underutilization of the existing physical production capacity;

Um: unemployment originating in a shortage of new investment, that fails to compensate for the loss of employment due to the ongoing scrapping of older vintages of production capacity. Two dimensions can be distinguished (a) production capacity may increase too slowly and (b) the new capacity may be too capital intensive to guarantee the absorption (utilization) of the (given) labour force;

Un: unemployment due to labour market imperfections leading to real mismatches of supply and demand. Market imperfections, in turn, originate in the behavioural reactions of workers and employers to incomplete information and in the fact that adjustments are seldom immediate and necessarily take time (see de Neubourg 1985a for details);

Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 52 , Issue 3-4: Symposium on Unemployment in Europe , December 1986 , pp. 227 - 255
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1986 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

University of Limburg, Maastricht, Netherlands. I wish to thank Angus Maddison, David Heathfield, Joan Muysken and Peter de Gijsel for their critical and valuable comments on earlier drafts of the paper.

References

BIBLIOGRAPHY

Abraham, K. (1983), Structural/Frictional vs. Deficient Demand Unemployment: Some New Evidence, American Economic Review, LXXIIV, pp. 708–724.Google Scholar
Addison, J.T. & Siebert, W.S. (1979), The Market for Labor, Goodyear, Santa Monica.Google Scholar
Armstrong, H. & Taylor, H. (1981), The Measurement of Different Types of Unemployment, in: Creedy, J. (ed.), pp. 99–127.Google Scholar
Beveridge, W. (1909), Unemployment, A Problem of Industry, republished with a new part II, Longmans, Green and Co, London, 1930.Google Scholar
Beveridge, W. (1944), Full Employment in a Free Society, Allen and Unwin, London.Google Scholar
Bowers, J.K. (1976), Some Notes on Current Unemployment , in: Worswick, G.D.N. (ed.), The Concept and Measurement of Involuntary Employment, pp. 109–133.Google Scholar
Brown, A.J. (1975), UV-analysis, in Worswick, G.D.N. (ed.), The Concept and Measurement of Involuntary Unemployment, London, pp. 134–145.Google Scholar
Burchardt, F.A. et al. (1945), The Economics of Full Employment, Blackwell, Oxford.Google Scholar
Cramer, U., Klauder, W., Mertens, D., Reijher, L. & Spitznagel, E. (1976), Zum Problem der Strukturellen Arbeitslosigkeit, Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, 1.Google Scholar
Cramer, U. & Egle, F. (1976), Zur Durchschnittlichen Dauer der Arbeitslosigkeit, Mitteilungen aus der Arbeitsmarkt — und Berfusforschung, 9, pp. 482–495.Google Scholar
Davidson, P. (1967), A Keynesian View of Patinkin’s Theory of Employment, Economic Journal, September.Google Scholar
de Klerk, R.A., Van Der Laan, H.B.M. & Thio, K.B.T. (1977), Unemployment in the Netherlands : a Criticism of the den Hartog-Tjan Vintage Model, Cambridge Journal of Economics.Google Scholar
Den Hartog, H. & Tjan, H.S. (1976), Investments, Wages, Prices and Demand for Labour, A Clay-clay Vintage Model for the Netherlands, De Economist.Google Scholar
de Neubourg, C. (1985), The Origin and Insignificance of Unemployment due to Labour Market Imperfections, De Economist, 1, pp. 54–77.Google Scholar
de Neubourg, C. (1986), Social Security, Unemployment and the Utilisation of Labour Resources: a Complex Interrelation Internationally Compared, in Alleda, W. (ed.), The Future of the Welfare State, Maastricht, M.I.P., 1986, pp. 11–38.Google Scholar
de Neubourg, C. (1987), Unemployment, Labour Utilisation and Labour Market Accounting: Theory, Evidence, and Policy, forthcoming.Google Scholar
Dow, J.C.R. & Dicks-Mireaux, L.A. (1958), The Excess Demand for Labour, Oxford Economic Papers, vol. 10, pp. 1–33.Google Scholar
Driehuis, W. (1978), Labour Market Imbalances and Structural Unemployment, Kyklos, 31, pp. 638–661.Google Scholar
Driehuis, W. (1979), Capital-Labour Substitution and Other Potential Determinants of Structural Employment and Unemployment, OECD, Structural Determinants of Employment and Unemployment, Paris.Google Scholar
Evans, A.A. (1977), Notes on the Changing Relationship between Registered Unemployment and Notified Vacancies: 1961–1966 and 1966–1971, Economica, vol. 44, pp. 179–196.Google Scholar
Fels, G. & Weiss, F. (1978), Structural Change and Employment: the lesson of West Germany, in Giersch, H. (ed.), Capital Shortage and Unemployment in the World Economy, Tübingen, pp. 31–53.Google Scholar
Fitoussi, J.P. & Georgescu-Roegen, N. (1980), Structure and Involuntary Unemployment, in Malinvaud, E. & Fitoussi, J.P., Unemployment in Western Countries, Macmillan, London, pp. 206–277.Google Scholar
Foster, J.I. (1973), The Behaviour of Unemployment and Unfilled Vacancies: Great Britain 1958–1971 — A Comment, Economic Journal, vol. 83, n° 329, pp. 192–201.Google Scholar
Gilpatrick, E.G. (1966), Structural Unemployment and Aggregate Demand, John Hopkins.Google Scholar
Gordon, R.A. (1967), The Goal of Full Employment, Wiley and Sons, New York.Google Scholar
Gruen, F.H. (1978), Structural Unemployment as a Rival Explanattion — A Survey of an Inconclusive Argument, in Giersch, H. (ed.), Capital Shortage and Unemployment in the World Economy, Mohr, Tübingen.Google Scholar
Gujarata, D. (1972), The Behaviour of Unemployment and Unfilled Vacancies, Economic Journal, pp. 195–204.Google Scholar
Hall, R.E. (1970), Why is Unemployment Rate so High at Full Employment?, Brookings Papers on Economic Activity, 3, pp. 369–402.Google Scholar
Hansen, B. (1970), Excess Demand, Unemployment, Vacancies and Wages, The Quarterly Journal of Economics, vol. 84, n° 1, pp. 1–23.Google Scholar
Hartog, J. (1980), Tussen vraag en aanbod, Stenfert Kroese, Leiden.Google Scholar
Hill, M.J., Harrison, R.M., Sargeant, A.V. & Talbat, V. (1973), Men out of Work: a Study of Unemployment in three English Towns, Cambridge University Press, Cambridge.Google Scholar
Hill, M.J. (1976), Can we Distinguish Voluntary from Involuntary Unemployment?, in Worswick, G.D.N. (ed.), The Concept and Measurement of Involuntary Unemployment, Allen & Unwin, London.Google Scholar
Holden, K. & Peel, D.A. (1975), The Determinants of Unemployment and the UV-relationship, Applied Economics, 7.Google Scholar
Holt, C.C. & Search, J. (1970), ‘Phillips’ Wage Relation, and Union Influence: Theory and Evidence, in Phelps, E.S. et al., Micro Foundations of Employment and Inflation Theory, London, pp. 53–123.Google Scholar
Hughes, J.J. (1974), The Use of Vacancy Statistics in Classifying and Measuring Structural and Frictional Unemployment in Great Britain, 1958–1972, Bulletin of Economic Research, vol. 26, pp. 12–33.Google Scholar
Jenness, R.A. (1978), Manpower and Employment. Problems and Prospects, OECD, Paris.Google Scholar
Kahn, G.A. (1984), International Differences in Wage Behavior: Real, Nominal, or Exaggerated?, American Economic Review, n° 2, Papers and Proceedings, pp. 155–159.Google Scholar
Keynes, J.M. (1936), The General Theory of Employment Interest and Money, Macmillan, London.Google Scholar
Klaassen, C. & Heyke, H. (1977), Economic Growth and Employment, in Denton, G.R. & Cooper, J.J.N. (eds), The European Economy beyond the Crisis: from Stabilisation to Structural Change, Brugge.Google Scholar
Kuipers, S.K. & Buddenberg, F.H. (1978), Unemployment on Account of Market Imperfections in the Netherlands since the Second World War, De Economist, 126, pp. 380–412.Google Scholar
Maddison, A. (1980), Monitoring the Labour Market: A Proposal for a Comprehensive Approach in Official Statistics, Review of Income and Wealth, June.Google Scholar
Maddison, A. (1983), Why Do Unemployment Rates Differ?, Shell Lecture, University of Buckingham, October 25.Google Scholar
Malinvaud, E. (1977), The Theory of Unemployment Reconsidered, Yrjö Johnsson Lectures, Basil Black well, Oxford.Google Scholar
Malinvaud, E. (1982), Wages and Unemployment, The Economic Journal, n° 365, pp. 1–12.Google Scholar
Maneval, H. (1977), Arbeitslosigkeit, in: Handwörterbuch der Wirtschftswissenschaft, hrsg. Albers, von W. et al., Stuttgart etc., pp. 267–279.Google Scholar
Muysken, J. & de Neubourg, C. (1981), Qualitative Structural Unemployment in the Netherlands 1955–1979, Memorandum from the Institute of Economic Research, n° 75, Groningen.Google Scholar
Muysken, J., de Neubourg, C. & Van Der Burg, H. (1982), Qualitative Structural Unemployment in the Netherlands 1955–1980, in Burg, Van der, e.a., The Volume and Composition of Structural Unemployment in the Netherlands 1950–1980, N.P.A.O. publication n° 11, Staatsuitgeverij, Den Haag.Google Scholar
OECD (1982), Labour Supply, Growth Constraints and Work Sharing, Paris.Google Scholar
Parich, A. (1977), The Relation between Unemployment and Vacancies: a Comment, Applied Economics, pp. 77–90.Google Scholar
Phelps, E.S. (ed), (1970), Microeconomic Foundations of Employment and Inflation Theory, London, Macmillan.Google Scholar
Pigou, A.C. (1933), The Theory of Unemployment, London.Google Scholar
Riese, M. (1980), Ursachen und Erscheinungsformen der Arbeitslosigkeit; Veröffentlichungen des Osterreichischen Instituts für Arbeitsmarktpolitik, Heft Xxvi, Linz.Google Scholar
Robinson, J. (1937), Essays in the Theory of Employment, New York.Google Scholar
Scott, M. & Laslett, R.A. (1978), Can we get Back to Full Employment?, Macmillan, London.Google Scholar
Siegers, J.J. (1980), On Kuipers and Buddenberg’s Estimation of Unemployment due to Market Imperfection in the Netherlands since the Second World War, De Economist, 128, pp. 563–658.Google Scholar
Simler, N.S. (1964), Long-Term Unemployment, the Structural Hypothesis and Public Policy, American Economic Review, n° 6, pp. 985–1001.Google Scholar
Standing, G. (1981), The Notion of Voluntary Unemployment, International Labour Review, n° 5, pp. 563–579.Google Scholar
Taylor, J. (1972), The Behaviour of Unemployment and Unfilled Vacancies: Great Britain, 1958–71: an Alternative View, Economic Journal, pp. 1352–1365.Google Scholar
Thirlwall, A.P. (1969), Types of Unemployment: with Special Reference to « Unemployment in Great Britain », Scottish Journal of Political Economy, vol. 16, n° 1, pp. 20–49.Google Scholar
Thirwall, A.P. (1983), What are Estimates of the Natural Rate of Unemployment Measuring?, Oxford Bulletin of Economics and Statistics, pp. 173–179.Google Scholar
Turvey, R. (1977), Structural Change and Structural Unemployment, International Labour Review, September/October.Google Scholar
Van Den Berg, D. (1982), Specification and Estimation of the Unemployment-Vacancy Curve in the Netherlands, De Economist, pp. 397–419.Google Scholar
Warren, R.S. (1977), The Behaviour of Unemployment and Unfilled Vacancies in Great Britain, a Search-Turnover View, Applied Economics, pp. 237–242.Google Scholar