Labor market policy: A comparative view on the costs and benefits of labor market flexibility

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. I review theories and evidence on labor market policies and institutions in an international context. These include collective bargaining, minimum wages, employment protection laws, unemployment insurance (UI), mandated parental leave, and active labor market policies. Scandinavia and Central Europe follow more interventionist policies than Canada, the UK and the US. Vulnerability to external market forces and ethnic homogeneity may explain such differences. While the interventionist model appears to reduce wage inequality and raise job security for incumbent workers, it also often relegates new entrants (disproportionately women, youth and immigrants) and the less skilled to temporary jobs or unemployment. Terms of use: Documents in EconStor mayJEL-Code: J08, J68.

Crise e perspectivas para a economia brasileira

“…Fatas e Summers (2016) indicaram que recessões profundas aumentam o custo do ajuste fiscal e têm efeitos sobre o produto potencial, uma vez que consolidações fiscais que deprimem o crescimento econômico podem elevar a dívida pública. Kahn (2012), por sua vez, mostrou que o desemprego estrutural reduz a produtividade do trabalho, enquanto DeLong e Summers (2012) expuseram os efeitos negativos sobre o estoque de capital de grandes recessões.…”

Institutional analysis of the contemporary regional labour market in the Czech Republic

“…In general, policies aimed at labour market fl exibility can signifi cantly improve labour market outcomes and economic growth (Kahn, 2012).…”

Labour market reforms in Korea to promote inclusive growth

“…International evidence suggests that temporary jobs are a common response by firms to high costs of reducing permanent jobs (Kahn, 2010). The Tripartite Agreement acknowledged the importance of reform, stating that it will "clarify the standards and procedures for terminating employment contracts" (Box 2).…”