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The Labor Market and Economic Adjustment

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  • Pierre-Richard Agénor

    (International Monetary Fund)

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    Abstract

    This paper examines the role of the labor market in the transmission process of adjustment policies in developing countries. It begins by reviewing the recent evidence regarding the functioning of these markets. It then studies the implications of wage inertia, nominal contracts, labor market segmentation, and impediments to labor mobility for stabilization policies. The effect of labor market reforms on the flexibility of the labor market and the evidence regarding the wage and employment effects of trade reform are discussed next. The last part of the paper identifies a variety of issues that may require further investigation.

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Staff Papers - International Monetary Fund.

    Volume (Year): 43 (1996)
    Issue (Month): 2 (June)
    Pages: 261-335

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    Handle: RePEc:pal:imfstp:v:43:y:1996:i:2:p:261-335

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    Cited by:
    1. Scott, Ewan & Emerson, Robert D., 2001. "Wage Differentials And Trade Relationships In Jamaica: Applications Of Truncated Regression Models And Repeated Cross-Section Data," 2001 Annual meeting, August 5-8, Chicago, IL, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 20475, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Gimpelson, Vladimir & Treisman, Daniel & Monusova, Galina, 2000. "Public Employment and Redistributive Politics: Evidence from Russia’s Regions," IZA Discussion Papers 161, Institute for the Study of Labor (IZA).
    3. Christian A. Emini & Hippolyte Fofack, 2004. "A financial social accounting matrix for the integrated macroeconomic model for poverty analysis : application to Cameroon with a fixed-price multiplier analysis," Policy Research Working Paper Series, The World Bank 3219, The World Bank.
    4. Agenor, Pierre-Richard & Nabli, Mustapha K. & Yousef, Tarik & Jensen, Henning Tarp, 2007. "Labor market reforms, growth, and unemployment in labor-exporting countries in the Middle East and North Africa," Journal of Policy Modeling, Elsevier, Elsevier, vol. 29(2), pages 277-309.
    5. Agenor, Pierre-Richard, 2003. "The mini-integrated macroeconomic model for poverty analysis : a framework for analyzing the unemployment and poverty effects of fiscal and labor market reforms," Policy Research Working Paper Series, The World Bank 3067, The World Bank.
    6. Khan, haider, 2008. "Analyzing Poverty Impact of Trade Liberalization Policies in CGE Models: Theory and Some Policy Experiments in Agricultural and Non-agricultural Sectors in South Asia," MPRA Paper 7609, University Library of Munich, Germany, revised Mar 2008.
    7. Rob Vos & Marco V. Sánchez & Cornelia Kaldewei, 2008. "Latin America and the Caribbean’s Challenge to Reach the MDGs: Financing Options and Trade-offs," Working Papers, United Nations, Department of Economics and Social Affairs 68, United Nations, Department of Economics and Social Affairs.

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