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Labor market policy: A comparative view on the costs and benefits of labor market flexibility

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  • Lawrence M. Kahn

Abstract

I review theories and evidence on labor market policies and institutions in an international context. These include collective bargaining, minimum wages, employment protection laws, unemployment insurance (UI), mandated parental leave, and active labor market policies. Scandinavia and Central Europe follow more interventionist policies than Canada, the UK and the US. Vulnerability to external market forces and ethnic homogeneity may explain such differences. While the interventionist model appears to reduce wage inequality and raise job security for incumbent workers, it also often relegates new entrants (disproportionately women, youth and immigrants) and the less skilled to temporary jobs or unemployment.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Policy Analysis and Management.

Volume (Year): 31 (2012)
Issue (Month): 1 (December)
Pages: 94-110

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Handle: RePEc:wly:jpamgt:v:31:y:2012:i:1:p:94-110

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Web page: http://www3.interscience.wiley.com/journal/34787/home

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References

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Cited by:
  1. Randall S. Jones & Satoshi Urasawa, 2012. "Promoting Social Cohesion in Korea," OECD Economics Department Working Papers 963, OECD Publishing.
  2. Kocher, Martin G. & Luhan, Wolfgang J. & Sutter, Matthias, 2012. "Testing a Forgotten Aspect of Akerlof's Gift Exchange Hypothesis: Relational Contracts with Individual and Uniform Wages," IZA Discussion Papers 6415, Institute for the Study of Labor (IZA).
  3. Westling, Tatu, 2011. "Incentive pay and gender gaps in the Nordic countries," MPRA Paper 33083, University Library of Munich, Germany.
  4. Joanna Osiñska, 2013. "Postawy wzglêdem euro i ich determinanty– przegl¹d badañ i literatury przedmiotu," Working Papers, Institute of Statistics and Demography, Warsaw School of Economics 70, Institute of Statistics and Demography, Warsaw School of Economics.
  5. Anna Matysiak & Dorota Wêziak-Bia³owolska, 2013. "Country-Specific Conditions for Work and Family Reconciliation: An Attempt at Quantification," Working Papers, Institute of Statistics and Demography, Warsaw School of Economics 67, Institute of Statistics and Demography, Warsaw School of Economics.

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