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Labour market reforms in a globalised world

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  • Gabriel Felbermayr
  • Mario Larch
  • Wolfgang Lechthaler

Abstract

In the traditional model of international trade, labour market reforms in one country are often viewed as beggar-thy-neighbour policies, because they negatively affect the competitiveness and employment levels of the country’s trading partners. Empirical evidence, however, suggests that this is not the case. By addressing labour market reforms in the context of intra-industry trade, this article explains how such reforms, while boosting employment, ultimately reduce a country’s terms of trade, thereby benefitting the country’s trading partners. The authors call for more international policy coordination to achieve optimal outcomes. Copyright ZBW and Springer-Verlag Berlin Heidelberg 2012

Suggested Citation

  • Gabriel Felbermayr & Mario Larch & Wolfgang Lechthaler, 2012. "Labour market reforms in a globalised world," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 47(5), pages 307-312, September.
    • Handle: RePEc:spr:intere:v:47:y:2012:i:5:p:307-312
    DOI: 10.1007/s10272-012-0433-8
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    Cited by:

    1. Meltem İNCE YENİLMEZ, 2017. "What Determines Labour Movement from Turkey to Europe? Extent of the Situation and Implications," Sosyoekonomi Journal, Sosyoekonomi Society, issue 25(31).
    2. Baas, Timo & Belke, Ansgar, 2014. "Labor Market Reforms and Current Account Imbalances - Beggar-thy-Neighbor Policies in a Currency Union?," Ruhr Economic Papers 505, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. repec:zbw:rwirep:0505 is not listed on IDEAS
    4. Timo Baas & Ansgar Belke, 2014. "Labor Market Reforms and Current Account Imbalances - Beggar-thy-Neighbor Policies in a Currency Union?," Ruhr Economic Papers 0505, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Claudia Busl & Atilim Seymen, 2013. "(Spillover) Effects of Labour Market Reforms in Germany and France. WWWforEurope Working Paper No. 8," WIFO Studies, WIFO, number 46855, April.

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