Employment Flexibility, Dual Labour Markets, Growth, and Distribution

Dutt, Amitava Krishna; Charles, Sébastien; Lang, Dany

doi:10.1111/meca.12093

Cited by 24 publications

(4 citation statements)

References 23 publications

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“…For instance, Krishna Dutt et al. () show that an increase in employment flexibility can make the economy more responsive to exogenous shocks in demand and it can increase investment demand. At the same time, both firms and workers may reduce investments in specific human capital because of the shorter expected duration of a contract, thus productivity falls (Dolado et al.…”

Section: Literature Review and Research Questionsmentioning

confidence: 99%

Uncertainty, Flexible Labour Relations and R&D

Cintio

Grassi

2016

Metroeconomica

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This paper examines the effects of uncertainty and flexible labour contracts on the Research and Development (R&D) intensity. Using a panel of Italian manufacturing firms, we find a hump-shaped relationship between workforce flexibility and R&D intensity. Moreover, as predicted by the real options theory, our results suggest that product market uncertainty reduces R&D efforts and that flexible labour contracts countervail the adverse effect of uncertainty on R&D.* We thanks the editor, the anonymous referees and participants at the EEA-ESEM in Gothenburg for useful comments and suggestions.Recent developments in the theory of investment have shown that simple rules based on the Net Present Value (NPV) of expected cash flows are not 1 R&D intensity is defined as the ratio of R&D expenditure to sales revenues.

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Section: Literature Review and Research Questionsmentioning

confidence: 99%

Uncertainty, Flexible Labour Relations and R&D

Cintio

Grassi

2016

Metroeconomica

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“…Doubts about the effectiveness of flexibility are raised also by Bassanini and Duval (2006), O'Higgins (2012), Blanchard, Florence Jaumotte, and Prakash Loungani (2014), Phillip Arestis and Ana Rosa González-Martínez (2015), Amitava Krishna Dutt, Sébastien Charles, and Dany Lang (2015), Emiliano Brancaccio, Nadia Garbellini, and Raffaele Giammetti (2017). Some authors (Eichorst et al 2010) distinguish between external and internal flexibility.…”

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confidence: 99%

Poverty and labour market institutions in Europe

Liotti

Canale

2020

Panoeconomicus

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The aim of this paper is to analyse the effects of flexibility in the labour market on workers? monetary poverty in 15 European countries in the time span 2005-2016. We estimate how the labour market regulation index (LMRI) affects workers? monetary poverty through two empirical exercises: in the first one, we use an autoregressive distributed lag model and, in the second one, the generalized method of moments model. The results suggest that greater flexibility of the labour market is positively correlated with greater monetary poverty among employed people. The result does not change significantly when introducing the effect of the economic crisis and the interaction effect between the economic crisis and the LMRI. Therefore, we conclude that the outcome should be considered to be noticeable whatever the macroeconomic conditions occurring in the labour market.

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“…The labor class is divided into two types by introducing the middle or manager class. SeeLavoie (2009), Palley (2014,Tavani and Vasudevan (2014),Dutt, Charles, and Lang (2015), andPalley (2016) Sasaki, Matsuyama, and Sako (2013). andSasaki (2016) use another distinction of workers: Regular and non-regular.4 Tobin (1993) insists that involuntary unemployment is caused by demand constraints rather than nominal price rigidity.5 AfterClower (1965) analyzed the rationed supply of goods, Grossman (1971, 1976),Bénassy (1975), Malinvaud (1977, andMuellbauer and Portes (1978) presented the general disequilibrium model Ito (1985),Bénassy (1986),Böhm (1978).…”

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confidence: 99%

Dynamic analysis of a disequilibrium macroeconomic model with dual labor markets

Ogawa

2019

Metroeconomica

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We extend the general disequilibrium model of Malinvaud (1980) by using dual labor market theory. By considering two tiers of workers, we find that while the duality of the labor market expands an equilibrium regime in the short term, it does not always keep an equilibrium in the medium term. In the medium term, the business cycle converges toward a disequilibrium regime unless the goods market is potentially in equilibrium. Employment and wages at the steady state are affected by the size of the government expenditure, and the stability of wage bargaining is only a sufficient condition of the local stability of our dynamic system. Therefore, involuntary unemployment can be remedied only when goods demand is sufficiently large.

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Employment Flexibility, Dual Labour Markets, Growth, and Distribution

Cited by 24 publications

References 23 publications

Uncertainty, Flexible Labour Relations and R&D

Uncertainty, Flexible Labour Relations and R&D

Poverty and labour market institutions in Europe

Dynamic analysis of a disequilibrium macroeconomic model with dual labor markets

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