Globalization and Labour Markets Deregulation
AbstractWe present a model consistent with the stylized fact that "rigid Europe" has witnessed higher unemployment and a more compressed wage structure than "flexible America". A distinguishing feature of the present paper is that it endogenises the labour market regulations that account for this divergent experience. We use our political economy model to investigate the policy responses to globalization, i.e. to an increase in international capital mobility. It turns out that labour market institutions are not necessarily scaled down in the course of globalization; rather, the direction of the globalization-induced policy response is determined by the relative strength of the politically active groups.
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Bibliographic InfoPaper provided by Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim in its series Working Papers of the Research Group Heterogenous Labor with number 04-08.
Length: 44 pages
Date of creation: 08 Mar 2004
Date of revision:
Unemployment ; Minimum wage ; Lobbying;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- P50 - Economic Systems - - Comparative Economic Systems - - - General
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- Fischer, Justina A.V. & Somogyi, Frank, 2012.
"Globalization and protection of employment,"
39426, University Library of Munich, Germany.
- Fischer, Justina AV & Somogyi, Frank, 2009. "Globalization and Protection of Employment," MPRA Paper 17535, University Library of Munich, Germany.
- Justina A.V. Fischer & Frank Somogyi, 2009. "Globalization and Protection of Employment," KOF Working papers 09-238, KOF Swiss Economic Institute, ETH Zurich.
- Niklas Potrafke, 2013.
"Globalization and Labor Market Institutions: International Empirical Evidence,"
Ifo Working Paper Series
Ifo Working Paper No. 154, Ifo Institute for Economic Research at the University of Munich.
- Potrafke, Niklas, 2013. "Globalization and labor market institutions: International empirical evidence," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 829-842.
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