EMU Challenges European Labor Markets

Christiane Krieger-Boden (chrkriegerboden@aol.com), Dirk Dohse and Rüdiger Soltwedel

No 1999/131, IMF Working Papers from International Monetary Fund

Abstract: This paper discusses the challenges that European Monetary Union (EMU) poses for European labor markets, emphasizing in particular the regional dimension of the European unemployment problem. The authors argue that the inability of labor markets to adjust to shocks is largely a regional problem within EMU member countries, requiring structural reforms to enhance labor market flexibility but also a decentralization of competencies and greater diversity of labor market outcomes. Any attempt to successfully reform European labor markets and “make them fit for EMU” has to take into account the regional–and even a more decentralized firm–perspective.

Keywords: WP; business organization; wage flexibility; formation system; wage policy; collective bargaining; EU member states; indexation mechanism; European monetary union; regional labor markets; adjustment to shocks; shaping pay system; single currency; wage indexation mechanism; branch wage agreement; wage-bargaining system; labor market flexibility; wage equalization; wage dumping; wage formation process; EU member government; pay system; Labor markets; Unemployment; Labor market flexibility; Monetary unions; Employment; Europe (search for similar items in EconPapers)
Pages: 50
Date: 1999-09-01
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Citations: View citations in EconPapers (14)

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