A Comparative Study of Unemployment in the Eurozone and non-Eurozone EU during the Financial Crisis

Abstract: This paper examines the unemployment rate in 15 Eurozone countries and 12 non-Eurozone EU countries during the timespan between 2000 and 2015. By using pooled Ordinary Least Squared regressions for panel data, we have investigated the effects of being in the Eurozone during the financial crisis of the early 21st century. The foundation of this paper is based on Mundell's theory of Optimum Currency Areas, as well as the Phillips curve. The results indicate that being a part of the Eurozone has not been beneficial during the crisis, in terms of the unemployment rates.