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A Vibrant European Labor Market with Full Employment

Author

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  • Ritzen, Jo

    () (IZA and Maastricht University)

  • Zimmermann, Klaus F.

    () (IZA and University of Bonn)

Abstract

We sketch a visionary strategy for Europe in which full employment is quickly regained by 2020, where income inequality is reduced and the economies are more sustainable. We name this scenario "vibrant." It is contrasted with what would happen if present policies continue within the European Union (EU) and its member states. In the vibrant scenario, full employment is regained by more policy attention toward innovation and its underlying research and development (R&D), accompanied by more labor mobility within and between EU countries, in combination with a selective immigration policy based on labor market shortages. The road to full employment is embedded in a landscape with less income inequality and more "greening" of EU member states' economies. We translate the vibrant scenario into policy proposals distinguishing between the role for the EU and that of the member states. We hope these proposals will be included in the election programs for the upcoming 2014 European Parliament elections and in developing the mandate for the new European Commission in December 2014.

Suggested Citation

  • Ritzen, Jo & Zimmermann, Klaus F., 2013. "A Vibrant European Labor Market with Full Employment," IZA Policy Papers 73, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izapps:pp73
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    Cited by:

    1. Mussche, Ninke & Corluy, Vincent & Marx, Ive, 2016. "The Rise of the Free Movements: How Posting Shapes a Hybrid Single European Labour Market," IZA Discussion Papers 10365, Institute for the Study of Labor (IZA).
    2. Jo Ritzen, 2015. "Happiness as a guide to labor market policy," IZA World of Labor, Institute for the Study of Labor (IZA), pages 149-149, May.
    3. Guzi, Martin & Kahanec, Martin & Kureková, Lucia Mýtna, 2015. "How Immigration Grease Is Affected by Economic, Institutional and Policy Contexts: Evidence from EU Labor Markets," IZA Discussion Papers 9108, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    employment; labor mobility; innovation; income inequality; competition; labor markets; greening; happiness;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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