Structural unemployment, or persistently high levels of unemployment that do not follow the ups and downs of a typical business cycle, varies significantly across industrialized countries. In this CESifo volume, leading labor economists analyze the widely diverging patterns of long-term unemployment across Western Europe. Drawing on recent developments in labor market theory and macroeconomics to explain the emergence and persistence of unemployment, the studies look for fundamental explanations and common patterns that might lead to policy solutions. The two opening chapters offer overviews of the problem: European labor market expert Stephen Nickell highlights the unemployment situation in the "Big Four" continental European states of France, Germany, Italy, and Spain, and American economist Edmund S. Phelps focuses on new theoretical approaches that examine institutional factors influencing unemployment in a given country. Following these introductory essays,...

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