Martin Zagler investigates the interaction between changes in the level of unemployment and changes in the economic rate of growth. He asks, both in theory and in evidence, whether a change in the growth rate of the economy will affect the level of unemployment which the economy experiences, and whether a decline in the level of unemployment will foster or deteriorate the growth performance of the economy. The book provides the reader with a simple graphical toolkit - the resource constraint and the incentive condition - which allows her to understand the relationship between economic growth and unemployment. After a through theoretical and empirical investigation of the topic, the book suggests clear cut policy perspectives to deal with problems of economic growth and unemployment in the medium to long run.

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