Abstract:

High and persistent unemployment in many E.U. countries is one of the biggest challenges for policymakers and labour economists in the recent post crisis period. In these conditions, it is a widespread belief that the increase of employment represents an incentive of return to economic growth. Consequently, the alleviation of the labour taxation is very important to stimulate the employment rate growth. In this paper we made an analysis of the evolution of some macroeconomic indicators (labour taxation, GDP, FDI, trade openness, inflation) for the E.U. member states. Further on, using a panel date model we investigated the influence of the macroeconomic indicators upon the employment rate. The econometric results revealed that the GDP and FDI have a positive influence and the factors with a negative influence are labour taxation, trade openness and inflation, reflecting a normal economic situation.