Download Labor Markets and Social Security: Issues and Policy Options by John T. Addison, Paul J. J. Welfens (auth.), Professor Dr. PDF

By John T. Addison, Paul J. J. Welfens (auth.), Professor Dr. John T. Addison, Professor Dr. Paul J. J. Welfens (eds.)

John T. Addison and Paul J. J. Welfens simply because inflation turns out moribund in OECD international locations, obdurate unemployment turned the pinnacle coverage precedence of the Nineteen Nineties. Unemployment has elevated in lots of nations, achieving serious degrees for unskilled and younger employees in so much continental european international locations. Europe's employment functionality has endured to lag that during North the United States. The U. S. particularly completed a impressive mixture of low inflation and entire employment within the past due Nineties, at a time while the european suf­ fered from list unemployment premiums, whether inflation was once remarkably low. because the Nineteen Eighties, the consensus view between economists is that structural unem­ ployment performs a way more vital position than cyc1ical unemployment in Europe, yet that labour charges (wage expenses plus nonwage charges) also are a part of Europe's labour industry challenge. so much ecu international locations depend on a pay-as-you-go pub­ lic pension procedure. Contribution premiums steadily elevated within the Nineteen Eighties and Nineteen Nineties, whilst the percentage of younger staff in total employment was once dec1ining and lifestyles expectancy expanding. emerging nonwage bills from the pension method are yet one vital characteristic of labour markets in Europe. Given the striking dynamics of labour markets, new access into the labour strength, labour turnover, and adjustments in employment features, one has to additionally look for different components at the back of sus­ tained unemployment. excessive unemployment is important for ecu nations, the place you could aspect to rela­ tively few optimistic advancements after 1975. The U. K.

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Additional info for Labor Markets and Social Security: Issues and Policy Options in the U.S. and Europe

Example text

As a result the demand for domestic labour would become more sensitive to changes in its price. Empirical evidence of an increase in the elasticity of demand for (low skilled) labour is still scarce,l1 but RODRIK (1997) points out that it could affect the position of low skilled workers through different channels. An increase in labour standards or in labour benefits increases the wedge between the wage paid by the employer and that one received by the worker in an arnount corresponding to the cost of the increased labour standardslbenefits.

The general impression seemed to be that intra-industry trade does not affect the relative demand between high skilled and low skilled workers. If anything, factors are likely to gain from intra-industry trade, in particular in the case of horizontal intra-industry trade where trade leads to significant welfare gains. Recent contributions to the trade literature however have looked at the question of whether intra-industry trade may have an impact on the demand for high skilled and low skilled labour and thus on wage inequality.

Certainly, the large gaps in per capita income and wages between the present EU members and the acces sion candidates provide high incentives for east-west migration, which are likely to persist for quite some time; furthermore, geographical proximity and established historical and cultural ties may ease migration flows from the CEEC countries. Not surprisingly, therefore, discussion on the economic and social consequences of immigration, possibly on a large-scale, has been triggered in many countries.

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