Descriptive Statistic

Descriptive Statistics Presentation

Our variables :

→ Unemployment rates

—(0-100) Quantitative, ratio data

—→ Social protection benefits

—(0-5000) Quantitative, ratio data

→ —Countries (28 EU member states)

—Categorical, Qualitative, nominal data

—→ Healthy live expectancy based on self-perceived health

—(0-100) Quantitative, ratio data

—→ Mean consumption expenditure by household and per adult equivalent

—(0-100000) Quantitative, ratio data

→ —MFI interest rates – Loans to households – annual data

—(0-100) Quantitative, ratio data

→ —Main religion

—Qualitative, Categorical, nominal data

→ —Climate

—Qualitative, Categorical, nominal data

Our sample :

We have analyzed the data of all the 28 member states of the European Union (EU), which took part in the surveys of the database EUROSTAT in 2010.

Focus:

Throughout our studies in Economics and Organizations we have encountered and analyzed the negative effects a high unemployment rate can have on the economy of any given country and the individuals, which work within these economies. We have discovered that fighting unemployment is one of the key perspectives in the Keynesian school of economics and that governments should mobilize as many resources as possible in order to fight unemployment and help the people in need. However, the Classical school of economics, following Adam Smiths studies, suggests that unemployment is a natural aspect of any given economy and that markets will regulate themselves, hence making any form of social benefits offered to the unemployed a superfluous expense for governments. The classical school believes in the role of incentives and that it is the individuals’ responsibility to surmount problems such as unemployment, and not the governments to help them. Moreover, it even criticizes that such social benefits contradict the principles of incentives and therefore even discourage people to work as they receive help from the government any way. This has been discussed numerous times in the media of our countries and the two schools of economics have yet to come to an agreement on this matter. Therefore, we have decided to analyze the relationship between social benefits and the unemployment rates throughout the nations that were scrutinized in the EUROSTAT surveys and evaluate whether or not there might be evidence to support either of the economists’ claims and thus shed some light on this ongoing debate.