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This paper studies the effect of two labor market institutions, unemployment insurance (UI) and job search assistance (JSA), on the output cost and welfare cost of recessions. The paper develops a tractable incomplete-market model with search unemployment, skill depreciation during unemployment, and idiosyncratic as well as aggregate labor market risk. The theoretical analysis shows that an increase in JSA and a reduction in UI reduce the output cost of recessions by making the labor market more fluid along the job finding margin and thus making the economy more resilient to macroeconomic shocks. In contarst, the effect of JSA and UI on the welfare cost of recessions is in general ambiguous. The paper also provides a quantitative appliation to the German labor market reforms of 2003-2005, the so-called Hartz reforms, which improved JSA (Hartz III reform) and reduced UI (Hartz IV reform). According to the baseline calibration, the two labor market reforms led to a substantial reduction in the output cost of recessions and a moderate reduction in the welfare cost of recessions in Germany.

Labor market. --- Employees --- Market, Labor --- Supply and demand for labor --- Markets --- Supply and demand --- Labor market --- E-books --- Labor --- Macroeconomics: Consumption --- Saving --- Wealth --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Incomplete Markets --- Human Capital --- Skills --- Occupational Choice --- Labor Productivity --- Unemployment: Models, Duration, Incidence, and Job Search --- Demand and Supply of Labor: General --- Particular Labor Markets: General --- Labor Demand --- Wages, Compensation, and Labor Costs: General --- Labour --- income economics --- Labor markets --- Labor market institutions --- Job destruction --- Germany

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We present cross-country evidence on the impact of remittances on labor market outcomes. Remittances appear to have a strong impact on both labor supply and labor demand in recipient countries. These effects are highly significant and greater in size than those of foreign direct investment or offcial development aid. On the supply side, remittances reduce labor force participation and increase informality of the labor market. In addition, male and female labor supply show significantly different sensitivities to remittances. On the demand side, remittances reduce overall unemployment but benefit mostly lower-wage, lowerproductivity nontradables industries at the expense of high-productivity, high-wage tradables sectors. As a consequence, even though inequality declines as a result of larger remittances, average wage and productivity growth declines, the latter more strongly than the former leading to an increase in the labor income share. In fragile states, in contrast, remittances impose a positive externality, possibly because the tradables sector tends to be underdeveloped. Our findings indicate that reforms to foster inclusive growth need to take into account the role of remittances in order to be successful.

Emigrant remittances --- Immigrant remittances --- Remittances, Emigrant --- Foreign exchange --- Exports and Imports --- Labor --- Factor Income Distribution --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Informal Economy --- Underground Econom --- Remittances --- Labor Force and Employment, Size, and Structure --- Labor Demand --- Labor Standards: Labor Force Composition --- Demand and Supply of Labor: General --- Wages, Compensation, and Labor Costs: General --- Labour --- income economics --- International economics --- Labor force participation --- Labor markets --- Balance of payments --- International finance --- Labor market --- Economic theory --- United States

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Japan's potential growth rate is steadily falling with the aging of its population. This paper explores the extent to which raising female labor participation can help slow this trend. Using a cross-country database we find that smaller families, higher female education, and lower marriage rates are associated with much of the rise in women's aggregate participation rates within countries over time, but that policies are likely increasingly important for explaining differences across countries. Raising female participation could provide an important boost to growth, but women face two hurdles in participating in the workforce in Japan. First, few working women start out in career-track positions, and second, many women drop out of the workforce following childbirth. To increase women’s attachment to work Japan should consider policies to reduce the gender gap in career positions and to provide better support for working mothers.

Women --- Employment --- Human females --- Wimmin --- Woman --- Womon --- Womyn --- Females --- Human beings --- Femininity --- E-books --- Labor --- Macroeconomics --- Women''s Studies' --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Labor Economics Policies --- Labor Force and Employment, Size, and Structure --- Time Allocation and Labor Supply --- Labor Discrimination --- Economics of Gender --- Non-labor Discrimination --- Labor Economics: General --- Education: General --- Demand and Supply of Labor: General --- Gender studies --- women & girls --- Labour --- income economics --- Education --- Labor markets --- Gender --- Labor force --- Labor economics --- Labor market --- Economic theory --- Japan

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This paper examines the macroeconomic interaction between informality and gender inequality in the labor market. A dynamic stochastic general equilibrium model is built to study the impact of gender-targeted policies on female labor force participation, female formal employment, gender wage gap, as well as on aggregate economic outcomes. The model is estimated using Bayesian techniques and Indian data. Although these policies are found to increase female labor force participation and output, lack of sufficient formal job creation due to labor market rigidities leads to an increase in unemployment and informality, and further widens gender gaps in formal employment and wages. Simultaneously implementing such policies with formal job creating policies helps remove these adverse impacts while also leading to significantly larger gains in output.

Labor market --- Sex discrimination in employment --- Women --- Employees --- Market, Labor --- Supply and demand for labor --- Markets --- Employment --- Supply and demand --- Macroeconomics --- Economics --- E-books --- Labor --- Women''s Studies' --- Gender Studies --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Informal Economy --- Underground Econom --- Economics of Gender --- Non-labor Discrimination --- Labor Discrimination --- Economic Development: Human Resources --- Human Development --- Income Distribution --- Migration --- Demand and Supply of Labor: General --- Labor Economics: General --- Gender studies --- women & girls --- Labour --- income economics --- Social discrimination & equal treatment --- Gender studies, gender groups --- Gender inequality --- Labor markets --- Labor supply --- Gender diversity --- Gender --- Sex discrimination --- Sex role --- Labor economics --- India

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This paper explores the macroeconomic impacts of labor and product market deregulation using a small open-economy model with formal and informal markets. We examine both the long-run effects and the transition towards the post-reform equilibrium, while our main focus are reform packages and sequencing. The unofficial sector is a major determinant of the sign, and, in particular, the magnitude of responses. South Africa, an emerging country, is considered when Bayesian estimating the model. Regarding the long run, both labor and product market reforms considerably increase output, although labor market reforms are more successful in decreasing unemployment. Nevertheless, there are short-term costs, for example, a decrease in household consumption, net exports or output, or a decrease in competition. Combining reforms, especially with product market deregulation, are good at reducing short-term costs. Finally, concerning the speed of adjustment, it is usually better to start with a labor market reform.

Informal sector (Economics) --- Hidden economy --- Parallel economy --- Second economy --- Shadow economy --- Subterranean economy --- Underground economy --- Artisans --- Economics --- Small business --- E-books --- Finance: General --- Labor --- Informal Economy --- Underground Econom --- Labor Economics Policies --- Wages, Compensation, and Labor Costs: General --- General Financial Markets: General (includes Measurement and Data) --- Unemployment: Models, Duration, Incidence, and Job Search --- Demand and Supply of Labor: General --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Labour --- income economics --- Finance --- Commodity markets --- Labor market reforms --- Labor markets --- Financial markets --- Commodity exchanges --- Manpower policy --- Labor market --- Economic theory --- South Africa