Abstract:

The European Social Model acknowledges the central role that the labour market plays in the transformation of European society into a society based on sustainable growth, a smart and inclusive society. Lately, unemployment which affects a large part of the European working population, has become a main topic in all economic and political programs. Thus, in this article we have tried to estimate the effects that the European Social Model has on the EU labour market. Through a panel date model we tried to illustrate the impact of certain variables representative of the European social economy (tax rate on labour, social benefits, the growth rate of real gross domestic product) on unemployment.