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to a lesser extent, spending on active labour market policies appear to be robust determinants of the long-term share of …
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We study the impact of graduating in a recession in Flanders (Belgium), i.e. in a rigid labor market. In the presence of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working time and earnings by about 4.5% up to twelve years after...
Persistent link: https://www.econbiz.de/10010491732
This paper studies the effect of two labor market institutions, unemployment insurance (UI) and job search assistance (JSA), on the output cost and welfare cost of recessions. The paper develops a tractable incomplete-market model with search unemployment, skill depreciation during unemployment,...
Persistent link: https://www.econbiz.de/10011580666
Do labor market reforms initiated in periods of loose monetary policy yield different outcomes from those that were introduced in periods when monetary tightening prevailed? Since economic theory usually pays attention to the steady state change and ignores business cycle interactions of...
Persistent link: https://www.econbiz.de/10012103994
We develop a theoretical framework to explain firms' offshoring decisions in the presence of uncertainty. This model highlights the role of labor market institutions in shaping a firm's ability to effectively react upon future shocks, yielding a sharp prediction of the prevalence of offshoring...
Persistent link: https://www.econbiz.de/10011882486
This paper studies the effects of labour market reforms on the functional distribution of income in a DSGE model … (Roeger et al., 2008) with skill differentiation, in which households supply three types of labour: low-, medium- and high …-skilled. The households receive income from labour, tangible capital, intangible capital, financial wealth and transfers. We trace …
Persistent link: https://www.econbiz.de/10012118569
The paper introduces a model of enterprise formation in a unionized economy with labor protection and wage bargaining. Enterprise formation is subject to future market risk and is shaped by labor market institutions in the post-entry stage. The predictions of the model are tested in...
Persistent link: https://www.econbiz.de/10009781640
This paper shows that labor market institutions are important for the formation of new enterprises. The effects of labor market institutions on entrepreneurship, wage determination, and firm size are analysed analytically and illustrated numerically. The main result is that an increase in union...
Persistent link: https://www.econbiz.de/10009781656