The political economy of job protection and income redistribution
Abstract
This paper presents a model allowing to analyze voting, welfare institutions and economic performance. We consider a political economy framework with three classes of agents: entrepreneurs, employed workers and unemployed workers. Agents vote on alternative institutional options: the degree of labour market flexibility and the intensity of redistribution. We show that the welfare state configuration depends on the nature of the political system - majoritarian, coalition, twoparty. Because internationalization reduces the possibility for national government to e.ectively tax profits, the existing political coalition is fragilized by the process of globalization. The model generates results concerning the macroeconomic equilibrium employment level. Hence we can assess the effects of internationalization on macroeconomic performance. The impact of internalization depends on the nature of the political system (majoritarian versus coalition government) and on the institutional configuration (positive flexibility versus positive redistribution).Download Info
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Paper provided by HAL in its series PSE Working Papers with number halshs-00590841.Length:
Date of creation: Jan 2005
Date of revision:
Handle: RePEc:hal:psewpa:halshs-00590841
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Related research
Keywords: job security ; redistribution ; political equilibriums ; unemployment;Other versions of this item:
- Amable, Bruno & Gatti, Donatella, 2004. "The Political Economy of Job Protection and Income Redistribution," IZA Discussion Papers 1404, Institute for the Study of Labor (IZA).
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Persson, Torsten & Tabellini , Guido, 1997.
"Political Economics and Macroeconomic Policy,"
Seminar Papers
630, Stockholm University, Institute for International Economic Studies.
- Persson, Torsten & Tabellini, Guido, 1999. "Political economics and macroeconomic policy," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 22, pages 1397-1482 Elsevier.
- Persson, T. & Tabellini, G., 1997. "Political Economics and Macroeconomic Policy," Papers 630, Stockholm - International Economic Studies.
- Torsten Persson & Guido Tabellini, 1997. "Political Economics and Macroeconomic Policy," NBER Working Papers 6329, National Bureau of Economic Research, Inc.
- Torsten Persson & Guido Tabellini, . "Political Economics and Macroeconomic Policy," Working Papers 121, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Persson, Torsten & Tabellini, Guido, 1997. "Political Economics and Macroeconomic Policy," CEPR Discussion Papers 1759, C.E.P.R. Discussion Papers.
- Bruno Amable & Donatella Gatti, 2004. "Product market competition, job security, and aggregate employment," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 667-686, October.
- Marco Pagano & Paolo Volpin, 1999.
"The Political Economy of Corporate Governance,"
CSEF Working Papers
29, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 01 Jul 2005.
- Marco Pagano & Paolo F. Volpin, 2005. "The Political Economy of Corporate Governance," American Economic Review, American Economic Association, vol. 95(4), pages 1005-1030, September.
- Pagano, Marco & Volpin, Paolo, 2001. "The Political Economy of Corporate Governance," CEPR Discussion Papers 2682, C.E.P.R. Discussion Papers.
- Torsten Persson & Gerard Roland & Guido Tabellini, 2003.
"How Do Electoral Rules Shape Party Structures, Government Coalitions and Economic Policies?,"
Working Papers
251, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Persson, Torsten & Roland, Gérard & Tabellini, Guido, 2004. "How do Electoral Rules Shape Party Structures, Government Coalitions and Economic Policies?," CEPR Discussion Papers 4226, C.E.P.R. Discussion Papers.
- Torsten Persson & Gerard Roland & Guido Tabellini, 2004. "How Do Electoral Rules Shape Party Structures, Government Coalitions, and Economic Policies?," CESifo Working Paper Series 1115, CESifo Group Munich.
- Torsten Persson & Gerard Roland & Guido Tabellini, 2003. "How Do Electoral Rules Shape Party Structures, Government Coalitions, and Economic Policies?," NBER Working Papers 10176, National Bureau of Economic Research, Inc.
- André Sapir & Marco Buti, 1998. "Economic policy in EMU," ULB Institutional Repository 2013/8078, ULB -- Universite Libre de Bruxelles.
- Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147, July.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Gatti, Donatella, 2008.
"Macroeconomic Effects of Ownership Structure in OECD Countries,"
IZA Discussion Papers
3415, Institute for the Study of Labor (IZA).
- Donatella Gatti, 2008. "Macroeconomic effects of ownership structure in OECD countries," CEPN Working Papers halshs-00586850, HAL.
- Bruno Amable & Donatella Gatti & Jan Schumacher, 2006.
"Welfare-State Retrenchment: The Partisan Effect Revisited,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 22(3), pages 426-444, Autumn.
- Bruno Amable & Donatella Gatti & Jan Schumacher, 2006. "Welfare state retrenchment: The partisan effect revisited," PSE Working Papers halshs-00590537, HAL.
- Amable, Bruno & Gatti, Donatella & Schumacher, Jan, 2006. "Welfare State Retrenchment: The Partisan Effect Revisited," IZA Discussion Papers 1995, Institute for the Study of Labor (IZA).
- Bruno Amable, 2009.
"Structural reforms in Europe and the (in)coherence of institutions,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 25(1), pages 17-39, Spring.
- Amable, Bruno, 2008. "Structural reforms in Europe and the (in)coherence of institutions," CEPREMAP Working Papers (Docweb) 0809, CEPREMAP.
- Bruno Amable, 2008. "Structural reforms in Europe and the (in)coherence of institutions," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00340417, HAL.
- Bruno Amable, 2008. "Structural reforms in Europe and the (in)coherence of institutions," Documents de travail du Centre d'Economie de la Sorbonne r08063, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Addison, John T., 2006. "Politico-Economic Causes of Labor Regulation in the United States: Rent Seeking, Alliances, Raising Rivals' Costs (Even Lowering One's Own?), and Interjurisdictional Competition," IZA Discussion Papers 2381, Institute for the Study of Labor (IZA).
- Debora Di Gioacchino & Laura Sabani, 2009. "The Politics of Social Protection: Social Expenditure versus Markets' Regulation," Working Papers 116, University of Rome La Sapienza, Department of Public Economics.
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