The Determinants Of Unemployment Revisited – Empirical Evidence On Oecd

Unemployment is a serious economic problem that has repercussions for people, families, and entire civilizations. It is a dynamic phenomenon with immediate and long-term implications for individuals and society. As a result, understanding unemployment and its causes is critical for politicians, economists, and academics seeking to create effective measures to alleviate its harmful consequences. It is critical to acknowledge the complexities of unemployment to establish successful policies and programs that address its core causes. The goal of this research paper is to conduct a quantitative analysis of the main determinants of unemployment in The Organization for Economic Cooperation and Development, considering demographic, governmental, economic growth, and cultural factors, as well as the period of Financial and Economic Crisis (2008-2009), to determine their impact and the evolution of unemployment, which countries have the most promising results, and who are the outliers. As a result, during a 26-year period, pooled OLS, FEM, and REM methods have been applied to a panel database. Additionally, member states are clustered based on the factors of interest and subsampled depending on the year of joining the OECD. A comparative case study regarding the differences between European Union’s and OECD’s unemployment situation is presented as well. Previous research, on the other hand, has frequently concentrated on individual criteria, such as education level or job experience, without considering the larger economic, social, and political issues that might impact unemployment rates. Therefore, findings in this study are novel when compared to the previous literature in the subject, and they bring a new dimension to our knowledge of the unemployment phenomenon.