tag:blogger.com,1999:blog-5404820640426099135.post353095945959092803..comments2023-10-31T00:46:35.316+13:00Comments on Anti-Dismal: Unemployment is bad for employmentPaul Walkerhttp://www.blogger.com/profile/13731003529546075700noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5404820640426099135.post-22430228788044112472013-03-10T04:24:38.252+13:002013-03-10T04:24:38.252+13:00No reason, either empirical or theoretical, exists...No reason, either empirical or theoretical, exists for thinking that "free[ing] up the labour market" will decrease unemployment and help "more people get a job more quickly." See <a href="http://robertvienneau.blogspot.com/2013/03/g-c-harcourt-on-intellectual-dishonesty.html" rel="nofollow">here</a>, for example.Robert Vienneauhttps://www.blogger.com/profile/00872510108133281526noreply@blogger.comtag:blogger.com,1999:blog-5404820640426099135.post-72317924514800234382013-03-03T19:38:13.695+13:002013-03-03T19:38:13.695+13:00It depend on whether teh unemployment is cause by ...It depend on whether teh unemployment is cause by the supply side or the demand side. Note the point made in the article<br /><br />"this experiment directly uncovered duration dependence arising through employers' beliefs about unemployed workers."<br /><br />If the problem is on the demand, ie. employers expectations, then picking on the unemployed will not help. Better to do something to affect the expectations of employers. Or just free up the labour market so more people can get a job more quickly.Paul Walkerhttps://www.blogger.com/profile/13731003529546075700noreply@blogger.comtag:blogger.com,1999:blog-5404820640426099135.post-45768126913677172032013-03-03T03:40:22.664+13:002013-03-03T03:40:22.664+13:00Richard Layard has been banging on about this sinc...Richard Layard has been banging on about this since the 1980s. He uses it as the justification for "welfare to work" programs.<br /><br />Noe, whether one agrees with the solution or not, it does stem directly from his analysis that the longer you are unemployed the more likely you are to remain so.<br /><br />Thus, in his thinking, when people have been unemployed for (say) two years then Something Must Be Done. Some combination of forced work in return for benefits, lower benefits, work retraining, just something.Tim Worstallhttps://www.blogger.com/profile/13161727860817121071noreply@blogger.com