employed to unemployment facilitates a reduction in the level of employment protection; that unemployment benefits are lower …, the more employment reacts to wages; and that a higher level of unemployment and a right-wing government slow down the …In this paper we argue that many of the rigidities that characterize European labour markets can be understood as the …

In this paper we study the relationship between labour market institutions and monetary policy. We use a simple … macroeconomic framework to show how optimal monetary policy rules depend on labour institutions (labour adjustment costs, and … nominal and real wage rigidity) and social preferences regarding inflation, employment, and real wages. We also calibrate our …

In this paper we study the political issues associated with reform in the European labour market. We first discuss the … role played by labour market rigidities in European society, and argue that reform is a difficult task because many … labour market reform. …

In this paper we argue that employment protection legislation is more likely to arise when the rents earned by the … greater employment protection. The model also predicts that lower turnover increases the political support for employment … protection and that this political support is greater when employment protection is more harmful for employment. Also, rigidities …

The analysis provides a new explanation for two widespread problems concerning European unemployment policy: the … disappointingly small effect of many past reform measures on unemployment; and the political difficulties in implementing more … implement broad-based reform strategies. Our analysis suggests that major unemployment policies are characterized by economic …

This paper studies, in a model with unemployment, how labour market status affects the preferences for public spending … powerful than the unemployed, and negative persistence if the unemployed are marginally more powerful. Under a uniform … distribution of tastes for the public good, there is no persistence. The preferences of the unemployed may be non-single-peaked, so …

We develop a general equilibrium analysis of the impact of active labour market policy on unemployment, wages and the … employed have little exposure to unemployment and if the demand for unskilled labour is inelastic, there may be political … support for policies which actually raise the equilibrium level of total unemployment. …

develop a model where the government tries to increase employment by increasing labour market flexibility, and where any …This paper starts from the observation that despite their very high levels of unemployment, major European countries … have devoted few resources to reducing it. This suggests that there is little political concern about high unemployment. I …

equilibrium, thereby generating unemployment in the ‘East’. This slows the migration of human capital towards the East, but … quickens the migration of raw labour towards the West. A greater share of economic activity is eventually located in the … labour. …