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Labor policies and capital mobility in theory and in EMU

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  • Bertola, Giuseppe

Abstract

Europe׳s Economic and Monetary Union (EMU) was characterized by large international imbalances and uneven national labor market reforms. In this paper׳s model, labor policies that aim to increase the welfare of capital-poor individuals within each country are influenced by financial integration across differently capital-abundant countries. The model predicts that capital outflows should be associated with labor market deregulation, as was the case in EMU, and helps interpret inequality developments and policy tensions in that experience.

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  • Bertola, Giuseppe, 2016. "Labor policies and capital mobility in theory and in EMU," European Economic Review, Elsevier, vol. 87(C), pages 62-77.
    • Handle: RePEc:eee:eecrev:v:87:y:2016:i:c:p:62-77
    DOI: 10.1016/j.euroecorev.2016.04.007
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    Cited by:

    1. Giuseppe Bertola & John Driffill & Harold James & Hans-Werner Sinn & Jan-Egbert Sturm & Ákos Valentinyi, 2015. "Chapter 3: European Regional Disparity: Borders Strike Back," EEAG Report on the European Economy, CESifo, vol. 0, pages 66-77, February.
    2. Giuseppe Bertola, 2018. "Inequality and Market Integration: Direct Effects and Policy Implications in EMU," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 19(02), pages 03-08, July.
    3. Bertola, Giuseppe, 2017. "European unemployment revisited: Shocks, institutions, integration," Research in Economics, Elsevier, vol. 71(3), pages 588-612.
    4. Bertola, Giuseppe, 2019. "Wedges: Distribution, distortions, and market integration," European Journal of Political Economy, Elsevier, vol. 59(C), pages 21-32.
    5. Atanu Ghoshray & Mercedes Monfort & Javier Ordóñez, 2020. "Economic integration and the distribution of income in Europe: A between country analysis," Working Papers 2020/11, Economics Department, Universitat Jaume I, Castellón (Spain).
    6. Florentin Kerschbaumer & Andreas Maschke, 2020. "European Monetary Union and Inequality: A Synthetic Control Approach," Working Papers PKWP2024, Post Keynesian Economics Society (PKES).
    7. repec:ces:ifofor:v:19:y:2018:i:2:p:03-08 is not listed on IDEAS
    8. Philip Arestis & Peter Phelps, 2018. "Inequality implications of European economic and monetary union membership: A reassessment," Environment and Planning A, , vol. 50(7), pages 1443-1472, October.

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    More about this item

    Keywords

    Policy competition; Politico-economic equilibrium;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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