...large spatial disparities in unemployment within national economies is a central issue in regional economics. Explanations that exist within the literature for why regional unemployment disparities have been so much more persistent over time in the EU than in the US can be broadly separated to the hysteresis and equilibrium arguments. Before illustrating the analysis and strength of these arguments it is important to ascertain the scale of persistent unemployment disparities across EU regions and U.S states, and why this may be a cause for concern. Regional disparities in unemployment rates are dramatically significant in Europe. In 2001, the average unemployment rate in the EU was 7.8%, but it ranged from 1.7% in Berkshire (UK) to 24.9% in Calabria (Italy).[1] These disparities are present even within single countries, where the range of unemployment rates is much higher than in the US. Disparities in European regional unemployment rates are also extremely persistent. In the US the correlation between regional unemployment rates between 1997-2004 is only 0.3, indicating that over two-thirds of any regional unemployment problem is solved over that period. In Europe, however, the correlation averages 0.83, suggesting that very little adjustment takes place. (Figure 1 in Appendix)[2] This is not a recent phenomena but persistence appears to have been the main feature of behaviour of regional unemployment disparities in European regions...
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...Vienna Institute for International Economic Studies www.wiiw.ac.at Please cite as: Vidovic H., (2013), ’Labour Market Developments and Social Welfare’, GRINCOH Working Paper Series, Paper No. 4.01 Labour Market Developments and Social Welfare Abstract Employment and activity rates in the new EU Member States (NMS) declined significantly up to the early 2000s and started to increase along with strong GDP growth thereafter. Job losses following the outbreak of the economic and financial crisis varied substantially across countries and have not been offset yet. Overall, the low educated and the young people are very disadvantaged on the NMS labour markets. With the exception of Poland and Slovenia, non-standard types of employment are uncommon in the NMS, following the pattern of Southern EU countries. Employment protection legislation has been adjusted to ‘European standards’ in the entire region. Union density and consequently the impact of trade unions on wage setting and employment in the NMS fell dramatically. In all NMS unemployment insurance schemes as well as minimum wage regulations were introduced at the beginning of the 1990s, but are less generous than in the EU-15. Content...
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...large investments in subprime securitization, so that significant unexpected losses on these investments could quickly lead market participants to question their solvency, which led to cash hoarding by these institutions, to fire sales of assets to bring about decrease in leverage and to a contraction in their willingness to lend which has affected the economic growth then. Political reasons are also factor of crisis. For example the rejection of the Maastricht Treaty in 1992 by the Denmark which has led to a no votes in France and the Nether lands then .According to the fact that the euro zone in particular has consistently suffered from a serious growth deficit in favor of the United States and remain plagued with slow growth, high unemployment, and public deficits, it’s one of the main purpose of its ratification. Furthermore...
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...Government officials considers the current issue of the EU treaty and the impact the outcome will have on Ireland. A referendum will be held to decide this outcome but it is noted that the political parties will have a strong influence on the public’s decision. As with all the EU countries, Ireland’s economy retracted sharply with the global financial crisis in 2008. They have recovered better than most of the EU but the major economic issue still facing Ireland is the unemployment rate which currently sits at over 14 per cent. Signing this EU treaty will impose tighter fiscal discipline on members by entrenching tougher tax regulations and limiting government spending (Halpin 2012). The overall aim of the treaty is based on the Keynesian theory of using monetary policy to create budget surplus. EU countries will reduce their budget deficits by the strict spending regulations outlined in the treaty. The downside to signing the treaty is the lack of control Ireland will have over the country. The primary avenue for government spending will be limited to tax increases. Ireland has been criticised for having one of the lowest personal and company tax rates in the EU. The benefit of the low corporate tax rate is the large foreign multinational corporations that create employment in Ireland. Increasing taxes could have a negative effect on the economy. If Ireland do not sign the treaty, although they will still be a member of the EU they will not be entitled to further financial assistance...
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...Power Candidate number: 525030 Introduction During this assignment the main European Union (EU) institutions will be evaluated and how decisions made on new countries joining the EU. The implications of EU enlargement on UK businesses and related to the UK economy will identified from conducting research. The EU institutions There are three main institutions involved in the European Union, the European Parliament, the Council of the European Union and the Commission. All these three institutions play a role in creating laws, adopting them into the EU and then implementing them into each member state and making sure that these are being adhered by. The European Parliament The parliament represents the EU citizens and is elected by these citizens. The European Parliament together with the Council, adopts or amends proposals on EU laws from the Commission. Parliament also supervises the work of the Commission and adopts the European Union's budget. Parliament also works closely with national parliaments of EU countries, which helps these member states to share their perspectives on how EU laws should be interpreted and work. The European Parliament is a defender of human rights and democracy in Europe and abroad. The Charter of Fundamental Rights in the European Union sets out the civil, political, economic and social rights of all individuals living on EU territory. The parliament also ensures that other institutions are performing properly, democratically...
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...term PIIGS is more commonly used now. TUTORIALS: Macroeconomics All of these countries are part of the eurozone and have been grouped together with the unflattering acronym of a barnyard animal known for its proclivity to mud, dirt and not-so- pleasant smells. The term itself is not an official title, nor does it separately delineate these countries from the European Union (EU). The term became a convenient way for currency traders and global investors to group these countries together. It has lived on as a club, of sorts, that no country would want to join and each participant would like to quit. While primarily concerned with resolving their economic struggles, the members of the PIIGS resent the negative connotations and some have renounced the use of the term altogether. Though each member has become a staple of the media's attention, many professional organizations have made efforts to reduce or eliminate the term itself due to its negative connotations. Their efforts are commendable; however, there is no mistaking that these countries have a history of facing economic difficulties, high unemployment and political instability. While some of their individual GDP growth rates are surprisingly impressive, most of it was financed, leaving these countries with heavy debt burdens. Consider the following information about each component of the PIIGS. Portugal Located on the tip of Spain in Southern Europe, this country ranks as the 14th largest economy in the European Union....
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...World Bank acknowledges Serbia as an upper-middle income country. Political reforms and economic llberalization in the beginning of 2000 helped the country to experience economic growth. Today Serbia is preparing for membership in the European Union so it keeps making reforms, including reforms directed on creating positive environment for doing business. Key factors that are taken into consideration are business environment, economic structure, economic growth and labor market. Business Environment. First of all, attention should be payed to the index of economic freedom, corruption and index of fiscal freedom. * Index of economic freedom. Currently it’s meaning is 59.4. This figure is lower than in other Balkan countries and the EU. However, in recent years there is a tendency to positive change (increase of 2.8% over the past 5 years); * One of the problematic issues is corruption. Index of corruption peception is quite high and is 42 points, it is the average rate in the Balkan countries, but relatively high in comparison with other European countries. This may indicate the need for searching for relations, lobby and high costs of corruption and bribery; * Index of fiscal freedom also has a negative tendency, it is 83.1. This indicator can have a negative impact on business activities because the company is spending heavily on taxes. Tariff rate is the highest in the region and is characterized by a rate of 6.5%. Income Tax Rate - 15%, Corporate Tax Rate -...
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...Brief History of EU In 1957, the “Six” countries Belgium, France, Italy, Luxembourg, Netherlands, and West Germany signed the Treaties of Rome which establish the European Economic Community,(ECC) establishing a customs union and the European Atomic Energy Community (Euratom) for cooperation in developing nuclear energy. In 1967 the Merger Treaty created a single set of institutions for the three communities, collected referred as European Community (EC). The EC was enlarged in 1973 when Denmark, Ireland, and the United Kingdom became members. The first direct election for European Parliament took place in 1979. Greece became member in 1981, Spain and Portugal in 1986. What were the four freedoms of the EC? (main idea behind EU) Goods, services, capital, and labor and would adopt a common policy toward nonmember trading partners and on agriculture transport. What was the main objective of The Single European Act? The Single European Act was signed in Luxembourg in 1986. The main objective was to create the Single Market with European Commission by the end of 1992. What was the significant of the Treaty of Maastricht in the EU? The Treaty of Maastricht was signed in Netherland in 1991. The Treaty of Maastricht created the European Union and the single currency though out Europe. What were the assumptions of the Cecchini Report? This report is the analysis of the benefits and costs anticipated from the European economic integration. The report was...
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...U52026 International Labour Markets ------------------------------------------------- ------------------------------------------------- FIRST REPORT – 2013 ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Submission 27/03/2013 Contents Page: Front Cover………………………………………………………….Page 1 Contents Page………………………………………………………Page 2 Questions...…………………………………………………………Page 3 Part One…………………………………………………………….Pages 4-9 Part Two…………………………………………………………….Pages 10-15 Bibliography……………………………………………………….Pages 16-21 Questions Country Case Study You are required to write a 2000 word report which provides a critical assessment of the labour market of a particular country. You will be allocated the country in the seminar in week 1. If you have not attended this seminar, then you need to consult the module leader to obtain the country you will cover. Part 1 of the report (worth 40% of the marks) requires you to provide a statistical profile of your allocated country’s labour market and present an overview of the most important trends and developments in this country’s labour market over the past decade. Part 2 of the report (worth 60% of the marks) requires you to provide a critical review of the particular situation in your country of NEETs – young people not in employment, education or training. Specifically, using appropriate...
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...per the 2014 World Bank statistics (World Bank). Romania is a former communist nation that joined NATO in 2004 and the European Union in 2007 (CIA). The primary industries include mining, timber, chemicals, and machine building. (Everyculture). Romania is currently a member of the European Association for Coal and Lignite (EURACOAL), an organization that works with the European Commission and European Parliament to discuss and debate on matters relating to coal mining in member EU countries. Sources: https://www.cia.gov/library/publications/the-world-factbook/geos/ro.html http://europa.eu/about-eu/countries/member-countries/romania/index_en.htm http://www.bbc.com/news/world-europe-17776265 Cultural environment The official language of Romania is Romanian. 90% of the population is Romanian, 7% Hungarian, and 2% Roma. The labor force of Romania consists of 9.6 million people, 37% of whom work in agriculture, 34% in industry, and the remaining 29% in services. Romania has a current unemployment rate of 11% (Every Culture) Romania, like most European countries, is very religious. 87% of the population practices Eastern orthodox, 6.8% are Protestants, 5.6% are Catholics, .4% are Muslim, and .2% are unaffiliated with any religion. Due to the large percentage of Eastern Orthodox residents, business transactions and scheduling should be avoided during the two weeks before and after Christmas as well as the weeks before and after Easter. Hierarchy and titles are highly...
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...Academic year 2014-2015 Migration towards Europe and the “welfare magnet”: “Determinants of Turkish Migration to EU-15” Master dissertation Student Kristýna Jedličková Home institution Vysoká škola ekonomická v Praze Supervisor prof. Claire Naiditch Submission date September 2015 Acknowledgment I would like to express my sincerest thanks to prof. Claire Naiditch for her guidance, support, patience and valuable recommendations. Declaration of authorship I, Kristýna Jedličková hereby declare that the thesis Migration towards Europe and the “welfare magnet” was written by myself and that all presented results are my own, unless stated otherwise. The literature sources are listed in the Literature Review section. Prague, September 30th, 2015 ........................................................ Signature Key words Migration, welfare magnet, public social spending, inflows of migrants, EU’s migratory policy, European welfare system, Turkish welfare system, Turkey, EU-15, gravity model, fixed effect, random effect, Hausman test, country specific fixed effect, time specific fixed effect. Abstract The purpose of this thesis is to analyse which factors drive migration from Turkey towards Europe and whether the welfare benefits play a major role in the decision making process. The analysis is based on a gravitation model of migration in log-log form. The FE and RE methods were employed as estimation techniques and the Hausman test enabled to distinguish them. The present...
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...government where he first serve as interior and health minister before becoming the minister of finance. New government goals: develop a set of long-term economic and social plans that would keep Denmark internationally competitive, despite its large public sector and costly welfare spending. Unemployment In 2008, the plans that was formulated to expand the Danish workforce by loosening labor rules and reducing welfare benefits did not help the increase of the unemployment. Denmark and Anders Fogh Rasmussen * Mixed legacy * Balanced government budget, little public debt and low unemployment * International reputation suffered from controversies over immigration * Liberal party * Center-right coalition government develop strict immigration policies that made it easy for foreigners to work in Denmark and difficult for them to stay in the country and benefit from education, skills training, job transfer programs, generous unemployment, disability and sick leave benefits , and government supported pensions * In mid 2008, The European court of justice requested that EU members states to grant residency permits to non-EU spouses and immediate family members of EU citizens. Denmark delay implementing this rule * a welfare-state model, originating in Denmark in the 1990s, that combines labour-market flexibility, social security, and a proactive labour...
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...Specimen: 1)a) Examine the possible factors which may have led to a change on the value of the pound sterling against the Euro in recent years b) Evaluate the likely economic effects of a significant fall in the value of sterling against the Euro. 2)a) Examine the effect of the Common Agricultural Policy on the world trade in agricultural goods. b) Evaluate the implications of a significant reduction in barriers to the trade and services for the global economy. 3)a) In 2002 the unemployment rates in Spain, France and Italy were significantly higher than in the UK. Examine the factors which might explain why the UK's unemployment rate was lower in these countries. b) To what extent might the pursuit of full employment conflict with other macroeconomic objectives? ------------------------------------------------- Exemplar: 1)a) 'The competitiveness of the Uk's manufacturing sector has declined in recent years'. Discuss the factors which may have affected the international competitiveness of UK goods. b) Evaluate the methods by which the UK's international competitiveness could be increased. 2)'Trading blocs are becoming increasingly important to the world economy' a) Discuss the benefits to a country belonging to a trading bloc. b) To what extent might the policies of the WTO conflict to those of trading blocs? ------------------------------------------------- June 02 1a) Examine the factors which have led to an increase in interdependence between...
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...Economy: 1 Currency 2 Banking: 3 Currency Moment vs. USD: 3 1) GDP GROWTH: 4 2) INFLATION: 6 3) FOREIGN DIRECT INVESTMENT 7 4) UNEMPLOYMENT 7 5) INTREST RATE 8 6) FOREIGN TRADE 9 7) INDUSTRIAL PRODUCTION 10 8) ECONOMIC FREEDOM INDEX 11 9) POLITICAL STABILITY: 11 10) Stock Market Performance 12 Major Trade Partners 12 Weaknesses 13 Conclusion 13 Appendix 14 History: Between 1772 and 1795, Russia, Prussia, and Austria partitioned Poland among themselves. Poland regained its independence in 1918 only to be overrun by Germany and the Soviet Union in World War II. It became a Soviet satellite state following the war, but its government was comparatively tolerant and progressive. Labour turmoil in 1980 led to the formation of the independent trade union "Solidarity" that over time became a political force with over ten million members. Free elections in 1989 and 1990 won Solidarity control of the parliament and the presidency, bringing the Communist era to a close. Poland joined NATO in 1999 and the European Union in 2004. Economy: Poland made a remarkable progress in its economy post liberalization. It makes an interesting case study as one of Europe’s champions of good economic management. It is a decentralized country with solid institutions, and its economy is diversified and deeply integrated within the European Union (EU) The country has population of about 38.2 million, and a per capita income of $12,660 With annual GDP of $489.8 billion and an...
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...The total number of registered unemployed has also grown rapidly from just over 50 000 in mid-2008 to almost 194 000 in March 2010, when it reached its maximum and started to diminish gradually (162 463 unemployed at the end of 2010). According to Eurostat data, the unemployment rate for those aged 15-64 years has reached its st d maximum of 20.7% in the 1 quarter 2010 and lowered slightly to 18,2% in the 3 quarter 2010: 17,2 20,1 9,4 Average in EU 20,7 10,2 19,8 22,0 20,0 18,0 16,0 14,0 12,0 10,0 12,2 8,9 10,4 14,3 8,8 7,5 6,8 9,6 8,0 6,0 4,0 Unemployment rate in Latvia 6,0 Unemployment rate in Latvia and the EU, EUROSTAT data At the end of 2007, average 30 000 registered unemployed were receiving unemployment benefits, and unemployment benefits’ expenses amounted 43.3 million LVL (61,7 MEUR); in 2008, 37 000 persons and 56.3 million LVL (80,2 MEUR); in 2009 – already 80 700 persons and 137.2 million LVL (195 MEUR) (almost three times more than in 2007). d Theeconomystartedtorecoverslowlyinthe3 quarterof2010,howevertheannualaverage growth rate for 2010 will still remain negative. Positive growth rate may be reached only in 2011. The social and economic situation in the country depends primarily on the stability of the macroeconomic environment – ability to develop the favourable environment for investors and entering of the foreign markets, to enhance possibilities for undertaking business...
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