Is There a Trade-off between Unemployment and Inequality? No Easy Answers: Labor Market Problems in the United States versus Europe

Rebecca Blank

Economics Public Policy Brief Archive from Levy Economics Institute

Abstract: Blank considers how the flexibility of U.S. labor markets and the regulation and redistribution policies of European labor markets may determine employers' responses to worldwide economic transformations that result in increasing wage disparity in the United States and continuing high unemployment in Europe. She suggests that since the transformations will undoubtedly continue, governments should seek to develop plans to offset and reduce the adverse labor market effects by combining the best aspects of the two institutional

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