In this paper we examine whether past labour market reforms aiming at reducing the rate of unemployment have raised its long-run volatility. Using non-linear panel data models applied to 24 OECD countries between 1985 and 2007, as well as Monte-Carlo techniques, we do not find any evidence of...

Low growth and huge current account deficits have characterised the Portuguese economy over the past decade. Easy credit in global markets, combined with the absence of incentives to limit loan-to-deposit ratios until recently, made it possible to finance internationally high levels of...

This paper discusses the pros and cons of a single labour contract. After reviewing the current state of dualism in labour markets and the recent labour reforms in Europe, we discuss the various proposals to eliminate dualism. Next, we emphasise the costs of dualism and discuss whether they...

The labour market in Estonia is volatile, increasing the risk that groups with some obstacles to enter the labour market (youth, non-Estonian speakers and workers with no upper secondary graduation certificate) may become long-term unemployed, due to the aggravating skills mismatch in the wake...

Irish youth was hit hard by the crisis. Many young workers have remained unemployed for a long time and, unless it is tackled promptly, this issue will become one of the most enduring legacies of the recession. New labourmarket policy initiatives have been introduced recently, but more will be...

Unemployment insurance is a key tool for risk sharing and redistribution and also a prominent automatic stabiliser. It is a volatile spending item by design, which can lead to vulnerabilities. This paper explores various shocks and sources of vulnerability of the unemployment insurance schemes...

A rapid decrease in unemployment is a short-term priority to limit social problems and reduce the risk of rising structural unemployment. To this end, strengthening labour market policies to sustain labour demand is key. The public works programme should remain temporary and become more focused...

In Slovakia, educational outcomes are below the OECD average and are too dependent on the socioeconomic background of students. Unemployment is high and the school-to-job transition process does not work well. Spending on education and active labour market policies are very low by international...

The crisis revealed the need for a strategic review of the existing social protection system in Estonia. Extreme income fluctuations on one side and low social benefits on the other side exposed fragile groups in the population to a significant poverty risk. The government has recently...

The strength of the German labour market response to the financial crisis of 2008-09 demonstrated the benefits of past labour market reforms, which raised work incentives, improved job matching and increased working hour flexibility. Going forward, the government should build on this success and...