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Budget Deficits And Labour Market Dynamics: An Investigation

Author

Listed:
  • DUTCAS, Monica Florica

    (Centre for Financial and Monetary Research “Victor Slavescu”, N.I.E.R., Romanian Academy, Bucharest, Romania)

Abstract

The paper addresses the concept of budget deficits and labour market dynamics to delve the complicated relationship between them. The research seeks to elucidate how government budget deficits, driven by fiscal policies, reverberate through the labour market landscape. It examines their multifaceted impact on employment levels, wage growth and labour force participation rates. A focal point of this work is to examine how government spending, financed by budget deficits, influences job creation or job losses in different economic sectors. It aims to distinguish between sectors most sensitive to deficits and those where fiscal deficits can have an incentive or dampening effect on employment opportunities. Research aims to assess the effectiveness of specific employment policies aimed at mitigating the negative repercussions of budget deficits on the labour market.

Suggested Citation

  • DUTCAS, Monica Florica, 2023. "Budget Deficits And Labour Market Dynamics: An Investigation," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 11(1), pages 53-71, October.
    • Handle: RePEc:vls:rojfme:v:11:y:2023:i:1:p:53-71
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    More about this item

    Keywords

    budget deficits; labour market; employment; government spending; employment policies;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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