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Labor Policies and Capital Mobility in Theory and in EMU

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  • Giuseppe Bertola

Abstract

“Race-to-the-bottom” deregulation is to be expected when markets operate across the borders of countries that independently choose and enforce labor policies. Less obviously, in pre-crisis EMU reforms of labor market policies were uneven and related to international imbalances. That pattern is readily explained by this paper’s model of financial integration between differently capital-abundant countries, within which labor policies benefit individuals with wealth/labor income ratios different from country’s aggregate.

Suggested Citation

  • Giuseppe Bertola, 2014. "Labor Policies and Capital Mobility in Theory and in EMU," CESifo Working Paper Series 4919, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_4919
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    References listed on IDEAS

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    1. Bertola, Giuseppe, 1993. "Factor Shares and Savings in Endogenous Growth," American Economic Review, American Economic Association, vol. 83(5), pages 1184-1198, December.
    2. Giuseppe Bertola, 2010. "Inequality, integration, and policy: issues and evidence from EMU," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(3), pages 345-365, September.
    3. Giuseppe Bertola, 2004. "A Pure Theory of Job Security and Labour Income Risk," Review of Economic Studies, Oxford University Press, vol. 71(1), pages 43-61.
    4. Hubert Gabrisch & Karsten Staehr, 2015. "The Euro Plus Pact: Competitiveness and External Capital Flows in the EU Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 53(3), pages 558-576, May.
    5. Ansgar Belke & Bernhard Herz & Lukas Vogel, 2007. "Reforms, Exchange Rates and Monetary Commitment: A Panel Analysis for OECD Countries," Open Economies Review, Springer, vol. 18(3), pages 369-388, July.
    6. Bertola, Giuseppe, 2013. "Policy Coordination, Convergence, and the Rise and Crisis of EMU Imbalances," CEPR Discussion Papers 9471, C.E.P.R. Discussion Papers.
    7. V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2007. "Business Cycle Accounting," Econometrica, Econometric Society, vol. 75(3), pages 781-836, May.
    8. Alessandro Turrini & Gabor Koltay & Fabiana Pierini & Clarisse Goffard & Aron Kiss, 2015. "A decade of labour market reforms in the EU: insights from the LABREF database," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-33, December.
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    11. Giuseppe Bertola, 2014. "Labor market policies and European crises," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-11, December.
    12. Sinn, Hans-Werner, . "The New Systems Competition: YRJÖ Jahnsson Lectures," Monographs in Economics, University of Munich, Department of Economics, number 19614, November.
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    16. Ulf Rinne & Klaus Zimmermann, 2012. "Another economic miracle? The German labor market and the Great Recession," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-21, December.
    17. Calmfors, Lars, 2001. "Wages and wage-bargaining institutions in the EMU – a survey of the issues," Seminar Papers 690, Stockholm University, Institute for International Economic Studies.
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    Cited by:

    1. Bertola, Giuseppe, 2017. "European unemployment revisited: Shocks, institutions, integration," Research in Economics, Elsevier, vol. 71(3), pages 588-612.
    2. Bertola, Giuseppe, 2017. "Wedges: Distribution, Distortions, and Market Integration," CEPR Discussion Papers 11980, C.E.P.R. Discussion Papers.
    3. Giuseppe Bertola, 2017. "Wedges: Distribution, Distortions, and Market Integration," CESifo Working Paper Series 6627, CESifo Group Munich.

    More about this item

    Keywords

    policy competition; public choice;

    JEL classification:

    • F00 - International Economics - - General - - - General
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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