Special Report on
Unemployment and Labor Market Institutions
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We study a two-country two-sector model of international trade in which one sector produces homogeneous products while the other produces differentiated products. The differentiated-product industry has firm heterogeneity, monopolistic competition, search and matching in its labor market, and wage bargaining. Some of the workers searching for jobs end up being unemployed. Countries are similar except for frictions in their labor markets, which include efficiency of matching, cost of vacancies, firing costs, and unemployment benefits. We study the interaction of labor market rigidities and trade impediments in shaping welfare, ...
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Product market reforms, labour market institutions and unemployment
We analyze the impact of product market competition on unemployment and wages, and how this depends on labour market institutions. We use differential changes in regulations across OECD countries over the 1980s and 1990s to identify the effects of competition. We find that increased product market competition reduces unemployment, and that it does so more in countries with labour market institutions that increase worker bargaining power. The theoretical intuition is that both firms with market power and unions with bargaining power are constrained in their behaviour by the elasticity of demand in the product market. We also find ...
Wikipedia
if it "consists of various sub-groups with little or no crossover capability". Segmentation can result in different groups, for example men and women, receiving different wages for the same work. The 19th century Irish political economist John Elliott Cairnes referred to this phenomenon as that of "noncompeting groups."
FEATURED BLOG
Over the past decade, European employment has grown by less than 10 per cent, while US employment has grown by 17 per cent, creating more than 2.2m jobs last year alone. (...) America grows while Europe stalls for many reasons, among them disparities in flexibility caused by employment laws. Europe will never recover until employment protection statutes are modernised and politicians restore flexibility to employers and workers. The unsung story behind US job creation is the flexibility and turnover in American labour markets, which boost employment. Frequent job changes lead to better job ... Read More
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REVIEWS AND OPINIONS
Herkömmliche Erklärungsmodelle der Krise setzen bei der außer Rand und Band geratenen Spekulation in der Finanzwelt an. In ihrem Beitrag für den Kongress Momentum09-Freiheit arbeiten Simon Sturn, Till van Treeck und Klara Zwickl heraus, warum das nur ein Teil der Wahrheit ist. Die tiefere Ursache sei in der ungleicher werdenden Einkommensverteilung zu finden. In der öffentlichen Debatte werden vor allem falsch regulierte Finanzmärkte und individuelles Fehlverhalten für die aktuelle Finanz- und Weltwirtschaftskrise verantwortlich gemacht. Solche Erklärungen greifen aber zu kurz. Denn als wichtige strukturelle Voraussetzung dieser ...
market research, surveys and trends
flexibility inherent in the American system — it is easier to both hire and fire workers than in many European countries implies that unemployment should be lower (at any given point in the business cycle) in the US than in Europe. Although this is the conventional wisdom, the research on which it was based (by Lazear and others) has long since been qualified or refuted. I looked at this in the context of the Australian debate about unfair dismissal laws a few years back. Although the early research supported the simple view that more flexibility = more jobs, later research yielded the conclusion that employment protection ...
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SURVEY RESULTS FOR
UNEMPLOYMENT AND LABOR MARKET INSTITUTIONS
and 24 years of age, increased by nearly the same number, 4.4 million. .... countries that have employment rates between 68 and 74 percent (see column 12). .... “Unemployment and Labor Market Institutions: Why Reforms Pay Off,” ...
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More than a million people in France have taken to the streets against their conservative government’s attempts to change the country’s labor law. Here in the United States, these strikes and protests are generally seen as another example of France’s inability to come to grips with the reality of “the global economy.” According to the conventional wisdom here, “Old Europe” is in need of serious economic reform. But will the reforms currently on the European political agenda actually help most Europeans? One of the recommended reforms is more “labor market flexibility.” This is an economist’s way of saying it should be easier to ...
industry trends, business articles and survey research
RELATED NEWS
Stocks tumbled Friday in one of their sharpest declines this year, leaving the Dow Jones industrial average firmly below 10,000, as a disappointing jobs report cast a pall over the nation’s economic recovery, The New York Times’s Christine Hauser reported . New worries that the financial crisis in Europe may be spreading — this time, to Hungary — added to investors’ anxiety. The sell-off was swift and brutal, with the broad market losing roughly 3.4 percent. The slide left major indexes in the red for the first week of June. All 30 of the Dow Jones industrials fell, some by more than 5 percent. After staying above 10,000 ...
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With Quantitative Easing having poured massive amounts of cash into the economy, basic monetary theory would have inflation launch to the moon. But prices have held steady if not come down. Is monetarism wrong? No, just the picture is more complicated than the basics. One great lever that is influencing inflation is ironically the government intervention itself. The current neo-Keynesian thinking that prevails seeks to replace private sector consumption with government consumption to keep the general economy flowing where growth is limited when consumption decreases in a recession. The QE pumped into the banks and other ...
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INFORMATION RESOURCES
UNEMPLOYMENT AND LABOR MARKET INSTITUTIONS: WHY REFORMS PAY OFF. Note: The main author of this chapter is Xavier Debrun. Yutong Li and Nathalie Carcenac ...
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difficult to think of other labor market policies or institutions that might ...... “Unemployment and Labor Market Rigidities: Europe versus North. America. ...
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UNEMPLOYMENT AND LABOR MARKET INSTITUTIONS
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QUESTIONS AND ANSWERS
Open unemployment is associated with capitalist economies.[citation needed] Preliterate communities treat their members as parts of an extended family and thus do not allow unemployment.[citation needed] In precapitalist societies such as European feudalism, the serfs, though clearly dominated and exploited by the lords, were never "unemployed" because they had direct access to the land, and the needed tools, and could thus work to produce crops. Just as on the American frontier during the nineteenth century, there were day laborers and subsistence farmers on poor land, whose position in society was somewhat analogous to the ...
Like stated earlier, the specifics of where, what type, and what for will help shape any answer regarding the labor market. However, I think it is important to look at two-types of data regarding the labor market; backwards and forwards. Backwards is, of course, data comprised of history; last week, last month, last quarter and so on... This data is useful for strategic planning and gaining a deep understanding of your target information. Like Bob mentioned earlier, I like the BLS; it is thorough and specific. I, like my clients, am more interested in "what's going to happen". And though no one can predict the future, ...
