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Le fonds européen d'ajustement à la mondialisation : pour quoi faire ?

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  • Étienne Wasmer
  • Jakob von Weizsäcker

Abstract

The recently established European Globalization Fund (EGF) is an attempt to better share the benefits of globalisation at the EU-level, targeting workers who loose their job due to trade-induced mass lay-offs. We find that the typical income shock for trade displaced workers is a serious one. However, workers displaced not through trade suffer a similar income shocks. We argue that the trade focus and the centralization at EU level may be justified on political economy grounds because trade policy is also decided at the EU level. But current EGF rules leave too much room for discretionary decisions. Therefore, we propose that the EGF focus on two simple active labour market schemes: a wage insurance scheme and lump-sum mobility allowances. JEL Classification: F00, F16, J62.

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Bibliographic Info

Article provided by Presses de Sciences-Po in its journal Revue de l'OFCE.

Volume (Year): n° 102 (2007)
Issue (Month): 3 ()
Pages: 223-246

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Handle: RePEc:cai:reofsp:reof_102_0223

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Keywords: globalization; unemployment; European Globalization Fund;

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