High unemployment has been one of the most disturbing features of
the economy of the 1980s. For a precedent, one must look to the
interwar period and in particular to the Great Depression of the
1930s. It follows that recent years have been marked by a
resurgence of interest amongst academics in interwar unemployment.
The debate has been contentious. There is nothing like the analysis
of a period which recorded rates of un employment approaching 25
per cent to highlight the differences between competing schools of
thought on the operation of labour markets. Along with historians,
economists whose objective is to better understand the causes,
character and consequences of contemporary unemployment and
sociologists seeking to understand contemporary society's
perceptions and responses to joblessness have devoted increasing
attention to this his torical episode. Like many issues in economic
history, this one can be approached in a variety of ways using
different theoretical approaches, tools of analysis and levels of
disaggregation. Much of the recent literature on the func tioning
of labour markets in the Depression has been macroeconomic in
nature and has been limited to individual countries. Debates from
the period itself have been revived and new questions stimulated by
modem research have been opened. Many such studies have been
narrowly fo cused and have failed to take into account the array of
historical evidence collected and anal sed by contemporaries or
reconstructed and re- inter preted by historians."
General
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