Macroeconomic Fluctuations and the Timing of Labour Market Reforms

Gilles Saint-Paul

No 3646, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: In this Paper, I analyse the pros and cons of implementing structural reforms of the labour market in booms versus recessions, in light of considerations of social efficiency, political viability, and macroeconomic fine-tuning. While the optimal timing of a reform depends on the relative importance of several conflicting effects, it seems clear that a reform should be accompanied by an expansionary macroeconomic policy. This makes structural reform more problematic in the context of the European Monetary Union.

Keywords: Labour market reforms; Unemployment; Employment protection; Monetary union; Firing costs; Political economy (search for similar items in EconPapers)
JEL-codes: E32 E52 E61 J60 (search for similar items in EconPapers)
Date: 2002-11
New Economics Papers: this item is included in nep-ifn and nep-mac
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Citations: View citations in EconPapers (7)

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Related works:
Chapter: Macroeconomic Fluctuations and the Timing of Labour-Market Reform (2004)
Working Paper: Macroeconomic Fluctuations and the Timing of Labor Market Reform (2004)
Working Paper: Macroeconomic Fluctuations and the Timing of Labor Market Reform (2002)
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