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Using a newly constructed macroeconometric model for Germany and the rest of the Euro area, we investigate the macroeconomic effects of structural labor market reforms in Germany. We find that neither the fact that Germany can no longer pursue an independent monetary policy nor the possibility...
Persistent link: https://www.econbiz.de/10003373604
allowing for third-country effects. When the workhorse two-country model is enlarged to include a third country, a reform … considerably. Differences in the reform spillover effects between foreign countries are mainly due to differences in …
Persistent link: https://www.econbiz.de/10011286047
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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...
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This paper argues that an important group of labor market policies are complementary in the sense that the effect of each policy is greater when implemented in conjunction with the other policies than in isolation. This may explain why the diverse, piecemeal labor market reforms in many European...
Persistent link: https://www.econbiz.de/10014396054
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-wage risk across institutional settings. It builds on previous research that dealt with the impact of labour market reform …, however, the effects of labour market reform policies on insider/outsider disparities are marginal. Additionally, we show that … produced by reform measures to the periphery of the labour market. …
Persistent link: https://www.econbiz.de/10011538849
The paper provides a theoretical rationale for flexicurity policies, which consist of low employment protection, generous unemployment insurance and active labor market programmes. It analyzes in which conditions flexicurity can be optimal. Low employment protection encourages costly education...
Persistent link: https://www.econbiz.de/10010500612