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Labor market policy: A comparative view on the costs and benefits of labor market flexibility

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  • Lawrence M. Kahn

Abstract

I review theories and evidence on labor market policies and institutions in an international context. These include collective bargaining, minimum wages, employment protection laws, unemployment insurance (UI), mandated parental leave, and active labor market policies. Scandinavia and Central Europe follow more interventionist policies than Canada, the UK and the US. Vulnerability to external market forces and ethnic homogeneity may explain such differences. While the interventionist model appears to reduce wage inequality and raise job security for incumbent workers, it also often relegates new entrants (disproportionately women, youth and immigrants) and the less skilled to temporary jobs or unemployment.
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  • Lawrence M. Kahn, 2012. "Labor market policy: A comparative view on the costs and benefits of labor market flexibility," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(1), pages 94-110, December.
  • Handle: RePEc:wly:jpamgt:v:31:y:2012:i:1:p:94-110
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    1. Joanna Osiñska, 2013. "Postawy wzglêdem euro i ich determinanty– przegl¹d badañ i literatury przedmiotu," Working Papers 70, Institute of Statistics and Demography, Warsaw School of Economics.
    2. Latif, Ehsan, 2014. "The impact of recession on drinking and smoking behaviours in Canada," Economic Modelling, Elsevier, vol. 42(C), pages 43-56.
    3. Peter Mueser & Marios Michaelides, 2017. "The Labor Market Effects of U.S. Reemployment Policy: Lessons from an Analysis of Four Programs during the Great Recession," Working Papers 18-05, Department of Economics, University of Missouri.
    4. Anna Matysiak & Dorota Węziak-Białowolska, 2016. "Country-Specific Conditions for Work and Family Reconciliation: An Attempt at Quantification," European Journal of Population, Springer;European Association for Population Studies, vol. 32(4), pages 475-510, October.
    5. Peter Mueser & Marios Michaelides, 2015. "Are Reemployment Services Effective? Experimental Evidence from the Great Recession," Working Papers 18-04, Department of Economics, University of Missouri, revised Feb 2018.
    6. Randall S. Jones & Satoshi Urasawa, 2012. "Promoting Social Cohesion in Korea," OECD Economics Department Working Papers 963, OECD Publishing.
    7. Dayanand S. Manoli & Marios Michaelides & Ankur Patel, 2018. "Long-Term Effects of Job-Search Assistance: Experimental Evidence Using Administrative Tax Data," NBER Working Papers 24422, National Bureau of Economic Research, Inc.
    8. Verónica Escudero, 2018. "Are active labour market policies effective in activating and integrating low-skilled individuals? An international comparison," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-26, December.
    9. Kocher, Martin G. & Luhan, Wolfgang J. & Sutter, Matthias, 2012. "Testing a forgotten aspect of Akerlof’s gift exchange hypothesis: Relational contracts with individual and uniform wages," Discussion Papers in Economics 12816, University of Munich, Department of Economics.
    10. Westling, Tatu, 2011. "Incentive pay and gender gaps in the Nordic countries," MPRA Paper 33083, University Library of Munich, Germany.
    11. Kassinis, George I. & Stavrou, Eleni T., 2013. "Non-standard work arrangements and national context," European Management Journal, Elsevier, vol. 31(5), pages 464-477.
    12. Iga Magda & Monika Potoczna, 2014. "Does flexible employment pay? European evidence on the wage perspectives of female workers," IBS Working Papers 3/2014, Instytut Badan Strukturalnych.
    13. Martin G. Kocher & Wolfgang J. Luhan & Matthias Sutter, 2012. "Testing a forgotten aspect of Akerlof�s gift exchange hypothesis: Relational contracts with individual and uniform wages," Working Papers 2012-02, Faculty of Economics and Statistics, University of Innsbruck.

    More about this item

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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