Structural reforms in Europe and the (in)coherence of institutions
The aim of this paper is to analyse the consequences of some structural reforms on the institutional coherence of OECD countries, particularly in Continental Europe, and on their economic performance, particularly as regards employment. Because institutions in developed political economies are interrelated through a complex network of complementarities, institutional change has consequences beyond the area concerned in a reform. This also implies that there are complementarity effects in reforms themselves. A challenge of reform programmes is therefore to achieve a new type of complementarity between reformed institutions. The paper presents empirical evidence questioning the compatibility of the ongoing structural reforms in product and labour markets with the existing institutional structures in some OECD countries. The coherence of the flexicurity strategy, i.e. a combination of labour-market flexibility and a generous welfare state, is also questioned, from the point of view of both economic efficiency and political economy. Copyright 2009, Oxford University Press.
References listed on IDEAS
Please 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.:
- Dean Baker & Andrew Glyn & David Howell & John Schmitt, 2002.
"Labor Market Institutions and Unemployment: A Critical Assessment of the Cross-Country Evidence,"
SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization.
2002-17, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
- Andrew Glyn, 2003. "Labor Market Institutions and Unemployment: A Critical Assessment of the Cross-Country Evidence," Economics Series Working Papers 168, University of Oxford, Department of Economics.
- Amable, Bruno & Demmou, Lilas & Gatti, Donatella, 2007. "Employment Performance and Institutions: New Answers to an Old Question," IZA Discussion Papers 2731, Institute for the Study of Labor (IZA).
- Richard B. Freeman, 2005.
"Labour Market Institutions Without Blinders: The Debate over Flexibility and Labour Market Performance,"
NBER Working Papers
11286, National Bureau of Economic Research, Inc.
- Richard Freeman, 2005. "Labour market institutions without blinders: The debate over flexibility and labour market performance," International Economic Journal, Taylor & Francis Journals, vol. 19(2), pages 129-145.
- Jorge Braga De Macedo & Joaquim Oliveira Martins, 2008.
"Growth, reform indicators and policy complementarities,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 16(2), pages 141-164, 04.
- Macedo, Jorge Braga de & Martins, Joaquim Oliveira, 2006. "Growth, Reform indicators and Policy complementarities," FEUNL Working Paper Series wp484, Universidade Nova de Lisboa, Faculdade de Economia.
- Jorge Braga de Macedo & Joaquim Oliveira Martins, 2006. "Growth, Reform Indicators and Policy Complementaries," NBER Working Papers 12544, National Bureau of Economic Research, Inc.
- Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147.
- 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).
- Bruno Amable & Donatella Gatti, 2005. "The political economy of job protection and income redistribution," PSE Working Papers halshs-00590841, HAL.
- Amable, Bruno & Gatti, Donatella, 2004. "Labour and Product Market Reforms: A Case for Policy Complementarity," IZA Discussion Papers 1190, Institute for the Study of Labor (IZA).
- Nickell, Stephen, 1999. "Product markets and labour markets1," Labour Economics, Elsevier, vol. 6(1), pages 1-20, March.
- 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.
- Aoki, Masahiko, 1994.
"The Contingent Governance of Teams: Analysis of Institutional Complementarity,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(3), pages 657-76, August.
- Masahiko Aoki, 2013. "The Contingent Governance Of Teams: Analysis Of Institutional Complementarity," Chapters, in: Comparative Institutional Analysis, chapter 14, pages 230-249 Edward Elgar Publishing.
- Saint-Paul, Gilles, 2000. "The Political Economy of Labour Market Institutions," OUP Catalogue, Oxford University Press, number 9780198293323.
When requesting a correction, please mention this item's handle: RePEc:oup:oxford:v:25:y:2009:i:1:p:17-39. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.