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The European Economic and Monetary Union and Labour Market Reform

Author

Listed:
  • Elżbieta Bednarek-Sekunda

    (Ministry of Finance, Warsaw, Poland, elzbieta.bednarek@gmail.com)

  • Richard Jong-A-Pin

    (University of Groningen, The Netherlands, r.m.jong.a.pin@rug.nl)

  • Jakob de Haan

    (University of Groningen, The Netherlands, jakob.de.haan@rug.nl)

Abstract

We examine whether the EMU has led to greater labour market flexibility, differentiating between reform that enhances the capacity of an economy to adjust to economic shocks and reform that aims to increase long-run output. Based on a panel model and using OECD data on labour market reforms for 27 OECD countries over the period 1994—2004, we find that the two types of labour market reform are driven by different variables. Most importantly, our results suggest that the EMU has had no effect on reform that enhances the economy’s capacity to adjust to shocks. Most of our evidence for reform that increases long-run output suggests that the EMU has not affected this type of reform either.

Suggested Citation

  • Elżbieta Bednarek-Sekunda & Richard Jong-A-Pin & Jakob de Haan, 2010. "The European Economic and Monetary Union and Labour Market Reform," European Union Politics, , vol. 11(1), pages 3-27, March.
    • Handle: RePEc:sae:eeupol:v:11:y:2010:i:1:p:3-27
    DOI: 10.1177/1465116509353458
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Peter Wierts & Henk van Kerkhoff & Jakob de Haan, 2012. "Trade Dynamics in the Euro Area: The role of export destination and composition," DNB Working Papers 354, Netherlands Central Bank, Research Department.
    2. Torój, Andrzej, 2012. "Excessive Imbalance Procedure in the EU: a Welfare Evaluation," MF Working Papers 11, Ministry of Finance in Poland, revised 03 Feb 2012.
    3. Louis Jaeck & Sehjeong Kim, 2014. "The Impact of EMU Enlargement on Structural Reforms: A Political Economy Approach," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 20(1), pages 73-86, February.
    4. Mikosch, Heiner & Sturm, Jan-Egbert, 2012. "Has the EMU reduced wage growth and unemployment? Testing a model of trade union behavior," European Journal of Political Economy, Elsevier, vol. 28(1), pages 27-37.
    5. Campos, Nauro F. & Eichenauer, Vera Z. & Sturm, Jan-Egbert, 2020. "Close encounters of the European kind: Economic integration, sectoral heterogeneity and structural reforms," European Economic Review, Elsevier, vol. 129(C).
    6. Vera Eichenauer & Ronald Indergand & Isabel Z. Martínez & Christoph Sax, 2020. "Constructing Daily Economic Sentiment Indices Based on Google Trends," KOF Working papers 20-484, KOF Swiss Economic Institute, ETH Zurich.
    7. Campos, Nauro F. & De Grauwe, Paul & Ji, Yuemei, 2023. "Structural reforms and economic performance: the experience of advanced economies," LSE Research Online Documents on Economics 120870, London School of Economics and Political Science, LSE Library.
    8. Ioannou, Demosthenes & Stracca, Livio, 2014. "Have the euro area and EU governance worked? Just the facts," European Journal of Political Economy, Elsevier, vol. 34(C), pages 1-17.
    9. Torój, Andrzej & Bednarek, Elżbieta & Bęza-Bojanowska, Joanna & Osińska, Joanna & Waćko, Katarzyna & Witkowski, Dariusz, 2012. "EMU: the (post-)crisis perspective. Literature survey and implications for the euro-candidates," MF Working Papers 12, Ministry of Finance in Poland, revised 06 Mar 2012.
    10. Jakob de Haan & Jeroen Hessel & Niels Gilbert, 2014. "Reforming the architecture of EMU: Ensuring stability in Europe," DNB Working Papers 446, Netherlands Central Bank, Research Department.
    11. Thushyanthan Baskaran & Zohal Hessami, 2017. "Monetary integration, soft budget constraints, and the EMU sovereign debt crises," Economics and Politics, Wiley Blackwell, vol. 29(3), pages 252-275, November.
    12. Torój, Andrzej, 2015. "Macroeconomic Imbalance Procedure in the EU: a Welfare Evaluation," MF Working Papers 22, Ministry of Finance in Poland.
    13. Yu-Fu Chen & Gylfi Zoega, 2011. "Floating Exchange Rates as Employment Protection," DEGIT Conference Papers c016_038, DEGIT, Dynamics, Economic Growth, and International Trade.
    14. Kuokštis, Vytautas & Asali, Muhammad & Spurga, Simonas Algirdas, 2022. "Labor market flexibility and exchange rate regimes," European Journal of Political Economy, Elsevier, vol. 75(C).
    15. Rasmus Wiese & Jakob de Haan & João Tovar Jalles, 2023. "The impact of endogenous product and labour market reforms on unemployment: New evidence based on local projections," Working Papers REM 2023/0296, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    16. Torój, Andrzej, 2017. "Managing external macroeconomic imbalances in the EU: the welfare cost of scoreboard-based constraints," Economic Modelling, Elsevier, vol. 61(C), pages 293-311.

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