In this paper, we assess the impact of fiscal consolidation on income inequality. Using a panel of 18 industrialized countries from 1978 to 2009, we find that income inequality significantly rises during periods of fiscal consolidation. In addition, while fiscal policy that is driven by spending...

In this paper we use cross-state panel data to show that top income inequality is (at least partly) driven by innovation. We first establish a positive and significant correlation between various measures of innovativeness and top income inequality in cross-state panel regressions. Two distinct...

In France and in Germany, the labour share income has recorded during the last thirty years some strong fluctuations. Those fluctuations could be linked to movements in price wedge and in interest rate and to increasing unemployment rate. After a theoretical examination of labour share income...

Short-time work programs were revived by the Great Recession. To understand their operating mechanisms, Pierre Cahuc, Francis Kramarz & Sandra Nevoux first provide a model showing that short-time work may save jobs in firms hit by strong negative revenue shocks, but not in less severely-hit...

This analysis proposes new measures of rent creation or (notional) mark-up and workers' share of rents on cross-country-industry panel data. While the usual measures of mark-up rate implicitly assume perfect labor markets, our approach relaxes this assumption, and takes into account that part of...

This paper examines the effects of introducing a non Walrasian labour market into the "New Neoclassical Synthesis'' framework. A dynamic stochastic general equilibrium model is formulated, solved, and calibrated in order to evaluate its ability to replicate the main features of the Euro area...

The recent empirical literature that uses Structural Vector Autoregressions (SVAR) has shown that productivity shocks identified using long--run restrictions lead to a persistent and significant decline in hours worked. This evidence calls into question standard RBC models in which a positive...

Hourly labour productivity levels in a number of European countries are thought to be very close to, or possibly even higher than the level 'observed' in the United States. At the same time, however, there are big differentials between hours worked and/or employment rates in these countries and...

In general, empirical studies having evaluated with firm individual data the effects of structural labour market reforms in European countries do not reach unambiguous conclusions. In particular, they find that reforms increasing incentives to lower the number of temporary labour contracts do...

Estimating returns to hours worked and the employment rate provides us with an original interpretation of changes in US productivity and other industrialized countries' catch-up with US productivity levels over recent decades