International Spillover of Labor Market Reforms /

This paper uses a dynamic economy model, with unionized labor markets, to analyze the effects of labor market reforms, similar to those recently introduced in Germany, on the domestic and trading partner economies. The model is calibrated on Germany and the rest of the Euro area. The results indicat...

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Autor principal: Dao, Mai
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2008.
Col·lecció:IMF Working Papers; Working Paper ; No. 2008/113
Accés en línia:Full text available on IMF
Descripció
Sumari:This paper uses a dynamic economy model, with unionized labor markets, to analyze the effects of labor market reforms, similar to those recently introduced in Germany, on the domestic and trading partner economies. The model is calibrated on Germany and the rest of the Euro area. The results indicate that German labor market reforms have positive spillover effects on the rest of the Euro area, which operate through the channel of trade, relative price adjustment, and financial market integration. Compared to a competitive labor market, setting, unionization dampens the positive response of the domestic economy and magnifies the spillover effects.
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Descripció física:1 online resource (35 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students