Download or read book Employment Protection Deregulation and Labor Shares in Advanced Economies written by Gabriele Ciminelli and published by International Monetary Fund. This book was released on 2018-08-16 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: Labor market deregulation, intended to boost productivity and employment, is one plausible, yet little studied, driver of the decline in labor shares that took place across most advanced economies since the early 1990s. This paper assesses the impact of job protection deregulation in a sample of 26 advanced economies over the period 1970-2015, using a newly constructed dataset of major reforms to employment protection legislation for regular contracts. We apply the local projection method to estimate the dynamic response of the labor share to our reform events at both the country and the country-industry levels. For the latter, we employ a differences-in-differences identification strategy using two identifying assumptions grounded in theory—namely that job protection deregulation should have larger negative effects in industries characterized by (i) a higher “natural” propensity to adjust the workforce, and (ii) a lower elasticity of substitution between capital and labor. We find a statistically significant, economically large and robust negative effect of deregulation on the labor share. In particular, illustrative back-of-the-envelope calculations suggest that job protection deregulation may have contributed about 15 percent to the average labor share decline in advanced economies. Together with existing evidence regarding the macroeconomic gains from job protection and other labor market reforms, our results also point to the need for policymakers to address efficiency-equity trade-offs when designing such reforms.
Download or read book Job Protection Deregulation in Good and Bad Times written by Mr.Romain A Duval and published by International Monetary Fund. This book was released on 2017-12-14 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the short-term employment effect of deregulating job protection for regular workers and how it varies with prevailing business cycle conditions. We apply a local projection method to a newly constructed “narrative” dataset of major regular job protection reforms covering 26 advanced economies over the past four decades. The analysis relies on country-sector-level data, using as an identifying assumption the fact that stringent dismissal regulations are more binding in sectors that are characterized by a higher “natural” propensity to regularly adjust their workforce. We find that the responses of sectoral employment to large job protection deregulation shocks depend crucially on the state of the economy at the time of reform——they are positive in an expansion, but become negative in a recession. These findings are consistent with theory, and are robust to a broad range of robustness checks including an Instrumental Variable approach using political economy drivers of reforms as instruments. Our results provide a case for undertaking job protection reform in good times, or for designing it in ways that enhance its short-term impact.
Download or read book Labor and Product Market Reforms and External Imbalances Evidence from Advanced Economies written by Mr.Romain A Duval and published by International Monetary Fund. This book was released on 2021-02-26 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: We explore the impact of major labor and product market reforms on current account dynamics using a new “narrative” database of major changes in employment protection for regular workers and product market regulation for non-manufacturing industries covering 26 advanced economies over the past four decades. Our main finding is that product market deregulation is associated with a weakening of the current account, while labor market deregulation is associated with an improvement. These effects are transitory and driven by both saving and investment responses. Labor and product market reforms both have a more positive impact on the current account balance when implemented under weak macroeconomic conditions. Our results are broadly consistent with predictions from recent DSGE models with endogenous producer entry and labor market frictions.
Download or read book Fighting Unemployment written by David R. Howell and published by Oxford University Press. This book was released on 2005 with total page 369 pages. Available in PDF, EPUB and Kindle. Book excerpt: Critically assessing the widely accepted view that the cause of unemployment is excessive labor market regulation and overly generous welfare state benefits, this book's chapters include both cross-country statistical analyses and country case studies.
Download or read book Why Deregulate Labour Markets written by Gøsta Esping-Andersen and published by OUP Oxford. This book was released on 2000-04-20 with total page 378 pages. Available in PDF, EPUB and Kindle. Book excerpt: Europe's mass unemployment and the call for extensive labour market de-regulation have, perhaps more than any other contemporary issue, impassioned political debate and academic research. With contributions from economists, political scientists and sociologists, Why Deregulate Labour Markets? takes a hard look at the empirical connections between unemployment and regulation in Europe today, utilizing both in-depth nation analyses and broader-based international comparisons. The book demonstrates that Europe's mass unemployment cannot be directly ascribed to excessive worker protection. Labour market rigidities can, however, be harmful for particular groups. The weight of the evidence suggests that a radical strategy of de-regulation would probably cause more harm than benefits for European economic performance.
Download or read book The Employment Effects of Technological Change written by Jens Rubart and published by Springer Science & Business Media. This book was released on 2007-08-15 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides an empirical and theoretical examination of the short- and medium run impacts of technological advances on the employment and wages of workers which differ in their earned educational degree. Furthermore, by introducing labor market frictions and wage setting institutions the author shows the importance of such imperfections in order to replicate empirical facts.
Download or read book Labor Market Tightness in Advanced Economies written by and published by . This book was released on 2022 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Two years after the onset of the COVID-19 pandemic, a puzzle has emerged in several advanced economies: unfilled job vacancies have increased sharply even though employment has yet to fully recover. This note sheds light on three contributing factors, namely barriers to returning to work, changing worker preferences away from certain types of jobs, and sectoral and occupational job mismatch. The note also assesses the impact of labor market tightness on wage growth, showing that it has been large for low-pay jobs but milder overall. Bringing disadvantaged groups of workers into the labor force, including by controlling the pandemic itself, would ease labor market pressures while amplifying the recovery and making it more inclusive."--Abstract.
Download or read book Working Under Different Rules written by Richard B. Freeman and published by Russell Sage Foundation. This book was released on 1994-05-03 with total page 273 pages. Available in PDF, EPUB and Kindle. Book excerpt: For much of the 20th century, American workers were the world's leaders in productivity, wages, and positive workplace conditions. American unions championed free enterprise and high labor standards, and American businesses dominated the world market. But, as editor Richard B. Freeman cautions in Working Under Different Rules, despite our relatively high standard of living we have fallen behind our major trading partners and competitors in providing good jobs at good pay—what was once considered "the American dream." Working Under Different Rules assesses the decline in the well-being of American workers—evidenced by spiraling income inequality and stagnant real earnings—and compares our employment and labor conditions with those of Western Europe, Canada, Japan, and Australia. As these original essays demonstrate, the modern U.S. labor market is characterized by a high degree of flexibility, with rapid employee turnover, ongoing creation of new jobs, and decentralized wage setting practices. But closer inspection reveals a troubling flip side to this adaptability in the form of inadequate job training, more frequent layoffs, and increased numbers of workers pushed to the very bottom of the income scale, into the low wage occupations where much of the recent job growth has occurred. While the variety of works councils prevalent throughout the developed world have done much to foster democratic rights and economic protection for employees, the virtually union-free environment emerging in many areas of the private U.S. economy has stripped workers of a strong collective voice. German apprenticeship programs and the Japanese system of "job rotation" represent more effective approaches to preparing workers for the changing demands of lifetime employment. In addition, workers in European advanced economies and in Canada have greater social protection than Americans. But while this has some cost in unemployment and higher taxes, carefully designed social safety nets do not seriously jeopardize economic efficiency. Working Under Different Rules is an illuminating analysis of the often complex interaction of market institutions, social policy, and economic results. The authors' up-to-date international assessment of unions, wage setting, apprenticeship programs, welfare support, and works councils suggests alternate ways of training, paying, and empowering workers that, if effectively adapted, could facilitate the growth of a healthier American economy and better prospects for American workers.
Download or read book Why Is Labor Receiving a Smaller Share of Global Income Theory and Empirical Evidence written by Mai Chi Dao and published by International Monetary Fund. This book was released on 2017-07-24 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper documents the downward trend in the labor share of global income since the early 1990s, as well as its heterogeneous evolution across countries, industries and worker skill groups, using a newly assembled dataset, and analyzes the drivers behind it. Technological progress, along with varying exposure to routine occupations, explains about half the overall decline in advanced economies, with a larger negative impact on middle-skilled workers. In emerging markets, the labor share evolution is explained predominantly by global integration, particularly the expansion of global value chains that contributed to raising the overall capital intensity in production.
Download or read book Designing Labor Market Institutions in Emerging and Developing Economies written by Mr.Romain A Duval and published by International Monetary Fund. This book was released on 2019-05-21 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses theoretical aspects and evidences related to designing labor market institutions in emerging market and developing economies. This note reviews the state of theory and evidence on the design of labor market institutions in a developing economy context and then reviews its consistency with actual labor market advice in a selected set of emerging and developing economies. The focus is mainly on three broad sets of institutions that matter for both workers’ protection and labor market efficiency: employment protection, unemployment insurance and social assistance, minimum wages and collective bargaining. Text mining techniques are used to identify IMF recommendations in these areas in Article IV Reports for 30 emerging and frontier economies over 2005–2016. This note has provided a critical review of the literature on the design of labor market institutions in emerging and developing market economies, and benchmarked the advice featured in IMF recommendations for 30 emerging market and frontier economies against the tentative conclusions from the literature.
Download or read book Wage Led Growth written by Engelbert Stockhammer and published by Springer. This book was released on 2013-12-03 with total page 329 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume seeks to go beyond the microeconomic view of wages as a cost having negative consequences on a given firm, to consider the positive macroeconomic dynamics associated with wages as a major component of aggregate demand.
Download or read book The Shadow Economy written by Friedrich Schneider and published by Cambridge University Press. This book was released on 2013-02-14 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents new data to give an overview of shadow economies from OECD countries and propose solutions to prevent illicit work.
Download or read book The Labor Market and Economic Adjustment written by Pierre-Richard Agénor and published by International Monetary Fund. This book was released on 1995-11-01 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the role of the labor market in the transmission process of adjustment policies in developing countries. It begins by reviewing the recent evidence regarding the functioning of these markets. It then studies the implications of wage inertia, nominal contracts, labor market segmentation, and impediments to labor mobility for stabilization policies. The effect of labor market reforms on economic flexibility and the channels through which labor market imperfections alter the effects of structural adjustment measures are discussed next. The last part of the paper identifies a variety of issues that may require further investigation, such as the link between changes in relative wages and the distributional effects of adjustment policies.
Download or read book Good Jobs Bad Jobs No Jobs written by Tony Avirgan and published by . This book was released on 2005 with total page 524 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Inequality and Labor Market Institutions written by Ms.Florence Jaumotte and published by International Monetary Fund. This book was released on 2015-07-01 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: The SDN examines the role of labor market institutions in the rise of income inequality in advanced economies, alongside other determinants. The evidence strongly indicates that de-unionization is associated with rising top earners’ income shares and less redistribution, while eroding minimum wages are related to increases in overall income inequality. The results, however, also suggest that a lack of representativeness of unions may be associated with higher inequality. These findings do not necessarily constitute a blanket recommendation for higher unionization and minimum wages, as country-specific circumstances and potential trade-offs with other policy objectives need to be considered. Addressing inequality also requires a multipronged approach, which should include taxation reform and curbing excesses associated with financial deregulation.
Download or read book World of Work Report 2013 written by International Labor Office and published by International Labour Organisation. This book was released on 2014-01-30 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: The World of Work Report 2013 provides analyses the global employment situation five years after the start of the global financial crisis. It looks at labour market performance and projections both at the global and regional levels
Download or read book Causes and Consequences of Income Inequality written by Ms.Era Dabla-Norris and published by International Monetary Fund. This book was released on 2015-06-15 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.
