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Whether observed differences in redistributive policies across countries are the result of differences in social preferences or efficiency constraints is an important question that paves the debate about the optimality of welfare regimes. To shed new light on this question, we estimate labor...
Persistent link: https://www.econbiz.de/10013121865
The EU Directive on Free Movement of 2004 extended free movement within the EU to Union citizens who are inactive and gave them access to the welfare benefits of host countries. The paper examines the extent to which these measures provoke migration to those countries with the highest levels of...
Persistent link: https://www.econbiz.de/10012777493
Divided government is often thought of as causing legislative deadlock. I investigate the link between divided government and economic reforms using a novel data set on welfare reforms in US states between 1978 and 2010. Panel data regressions show that under divided government a US state is...
Persistent link: https://www.econbiz.de/10013315641
Does the supply of a welfare state create its own demand? Many economic scholars studying welfare arrangements refer to Say's law and insinuate a self-destructive welfare state. However, little is known about the empirical validity of these assumptions and hypotheses. We study the dynamic effect...
Persistent link: https://www.econbiz.de/10013160043
This paper bolsters Prescott's (2004) claim that high taxes are responsible for lacklustre labor market performance in continental European countries. We develop a lifecycle model with endogenous skill formation, endogenous labor supply, and endogenous retirement. Labor taxation distorts not...
Persistent link: https://www.econbiz.de/10012772137
In European Welfare States, low-skilled workers are typically unionized, while the wage formation of high-skilled workers is more competitive. To focus on this aspect, we analyze how flexible international outsourcing and labour taxation affect wage formation, employment and welfare in dual...
Persistent link: https://www.econbiz.de/10013316453
employment ratio, namely, demographic changes, a growth dilemma and globalization. This paper discusses how these challenges …
Persistent link: https://www.econbiz.de/10012777727
markets are missing. The main results are: (i) outsourcing raises unemployment and labor income risk of unskilled workers; (ii …
Persistent link: https://www.econbiz.de/10013316451
The emergence of the Asian tiger countries and the participation of the ex-communist countries in world trade has … reduced the equilibrium price of labor in western Europe and elsewhere. However, the actual price of labor hardly reacts …
Persistent link: https://www.econbiz.de/10013317221
This paper studies the welfare and policy implications of globalization when risk averse workers face the risk of … unemployment. If the jobs performed by domestic workers can be easily substituted by imports, then globalization reduces wages and … increases unemployment. In this situation, in the absence of any government intervention globalization not only reduces the …
Persistent link: https://www.econbiz.de/10013028782