fundamental role in determining unemployment movements. This role has generally been examined by considering indirect transmission … the chain reaction theory of unemployment, and we find that capital stock is a major determinant of unemployment in the … Nordic countries. In particular, the different unemployment experiences of these economies derive from the temporary (albeit …

fundamental role in shaping unemployment movements. This role has generally been examined by considering indirect transmission … single-equation unemployment rate models. Here we advocate a different approach. We directly estimate the effects of capital … stock in the labour market by applying the chain reaction theory of unemployment, and we find that capital stock is a major …

Purpose – This paper aims to provide an account of the unemployment performance of two Nordic countries during their … conduct dynamic simulation exercises and explore the determinants of unemployment. Findings – The analysis yields two main … findings. First, the capital stock was the most important determinant of the unemployment trajectory in both countries. This …