Labour Markets in EMU - What has changed and what needs to change

Giuseppe Bertola

No 338, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: This paper reviews theoretical and empirical aspects of the interaction between Europe's Economic and Monetary Union and recent labour market developments. Policies meant to increase and stabilize labour incomes also tend to reduce employment and productivity, theory suggests that the latter effects should be sharper and more relevant within an integrated market area, making it harder for National policy makers to address the consequences of financial and other market imperfections. Empirical patterns of policy and outcome indicators in member and non-member countries of EMU are consistent with that theoretical mechanism. In the data, tighter economic integration is associated with better employment performance, substantial deregulation, sharper disemployment effects of remaining regulatory differences, and somewhat higher inequality and larger private financial market volume..

Keywords: labour market; monetary union; unemployment; employment; labour income; Bertola (search for similar items in EconPapers)
JEL-codes: E24 J20 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2008-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Working Paper: Labour Markets in EMU - What has Changed and What Needs to Change (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0338

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