This paper looks at some of the labour market outcomes of the economic reform policies in terms of inequality. The paper argues that labour market policies, regulations and institutions have at least three goals, improving allocative efficiency, improving dynamic efficiency and improving or...

This paper uses a long-run identifying restrictions on a three-variable system containing output growth, real wage growth and the unemployment rate, to isolate three "structural" shocks which drove business cycle fluctuations in a sample of 16 OECD countries during 1950-94.