Fiscal Policy and Labor Markets at Times of Public Debt
This paper explores the empirical relevance of public debt accumulation for labor market institutions and outcomes. In theory, since debt service obligations act as a constraint on policy choices, past debt accumulation and current interest rates should influence reform incentives and labor market performance. Empirically, employment and unemployment rates are strongly associated with debt stock and debt service indicators over five-year periods along 1980-2000 public debt and interest-rate stabilization cycles. Significant and sensible relationships are apparent between debt service, interacted with country-specific policy indicators, and labor market policy changes. While only further data and research may disentangle the force that jointly shape public finance and labor market developments, past evidence suggests that aggregate fiscal policy reactions to the 2008-09 crisis will have persistent labor market implications.
|Date of creation:||Oct 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
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.:
- Hauptmeier, Sebastian & Heipertz, Martin & Schuknecht, Ludger, 2006.
"Expenditure reform in industralised countries: a case study approach,"
ZEW Discussion Papers
06-50, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Sebastian Hauptmeier & Martin Heipertz & Ludger Schuknecht, 2007. "Expenditure Reform in Industrialised Countries: A Case-Study Approach," Fiscal Studies, Institute for Fiscal Studies, vol. 28(3), pages 293-342, 09.
- Hauptmeier, Sebastian & Heipertz, Martin & Schuknecht, Ludger, 2006. "Expenditure reform in industrialised countries: a case study approach," Working Paper Series 0634, European Central Bank.
- Francesco Daveri & Guido Tabellini, .
"Unemployment, Growth and Taxation in Industrial Countries,"
122, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Francesco Daveri & Guido Tabellini, 2000. "Unemployment, growth and taxation in industrial countries," Economic Policy, CEPR;CES;MSH, vol. 15(30), pages 47-104, 04.
- Daveri, Francesco & Tabellini, Guido, 1997. "Unemployment, Growth and Taxation in Industrial Countries," CEPR Discussion Papers 1681, C.E.P.R. Discussion Papers.
- Athanasios Tagkalakis, 2009. "Fiscal adjustments: do labor and product market institutions matter?," Public Choice, Springer, vol. 139(3), pages 389-411, June.
- Bertola, Giuseppe & Lo Prete, Anna, 2010. "Whence Policy? Government Policies, Finance, and Economic Integration," CEPR Discussion Papers 7820, C.E.P.R. Discussion Papers.
- 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.
- Chryssi Giannitsarou & Andrew Scott, 2008.
"Inflation Implications of Rising Government Debt,"
in: NBER International Seminar on Macroeconomics 2006, pages 393-442
National Bureau of Economic Research, Inc.
- Giannitsarou, Chryssi & Scott, Andrew, 2006. "Inflation Implications of Rising Government Debt," CEPR Discussion Papers 5961, C.E.P.R. Discussion Papers.
- Chryssi Giannitsarou & Andrew Scott, 2006. "Inflation Implications of Rising Government Debt," NBER Working Papers 12654, National Bureau of Economic Research, Inc.
- Missale, Alessandro, 1999. "Public Debt Management," OUP Catalogue, Oxford University Press, number 9780198290858, July.
- Reinhart, Carmen M. & Rogoff, Kenneth S., 2010.
"Growth in a Time of Debt,"
11129154, Harvard University Department of Economics.
- Stéphanie Guichard & Mike Kennedy & Eckhard Wurzel & Christophe André, 2007. "What Promotes Fiscal Consolidation: OECD Country Experiences," OECD Economics Department Working Papers 553, OECD Publishing.
- Emanuele Bacchiocchi & Elisa Borghi & Alessandro Missale, 2011.
"Public Investment under Fiscal Constraints,"
Institute for Fiscal Studies, vol. 32(1), pages 11-42, 03.
- Alessandro Missale & emanuele bacchiocchi & elisa borghi, 2009. "Public investment under fiscal constraints," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1093, Universitá degli Studi di Milano.
- Alessandro MISSALE & Emanuele BACCHIOCCHI & Elisa BORGHI, 2009. "Public investment under fiscal constraints," Departmental Working Papers 2009-45, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:8037. 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: ()The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.