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When Eastern Labour Markets Enter Western Europe CEECs. Labour Market Institutions upon Euro Zone Accession

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Author Info
Joanna Tyrowicz () (Faculty of Economic Sciences, University of Warsaw)

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Abstract

This paper reviews the literature on the labour market institutions in European Union Member States in the context of monetary integration. Traditionally, labour markets are a key concept in the optimal currency area theory, playing the role of the only accommodation mechanism of asymmetric shocks after the monetary unification. There are several theoretical frameworks linking the institutional design of the labour market to the potential effectiveness of monetary policy in the context of currency areas. Many empirical studies addressed these issues too, yielding important policy implications for labour market reforms in the process of monetary unification. However, there seem to be "white spots" in this patchwork, which may actually be particularly useful from the perspective of CEECs upon the accession to the euro zone. We suggest these research directions encompassing labour supply and theoretical frameworks of labour market flexibility benchmarking in the context of monetary integration.

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File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP13.pdf
File Format: application/pdf
File Function: First version, 2009
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Publisher Info
Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2009-03.

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Length: 52 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:war:wpaper:2009-03

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Related research
Keywords: labour market institutions; monetary integration; labour market reform; CEECs; EMU;

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Find related papers by JEL classification:
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
F15 - International Economics - - Trade - - - Economic Integration
E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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  1. Agell, Jonas & Lundborg, Per, 1995. " Theories of Pay and Unemployment: Survey Evidence from Swedish Manufacturing Firms," Scandinavian Journal of Economics, Blackwell Publishing, vol. 97(2), pages 295-307, June.
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This page was last updated on 2009-11-16.

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