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The distributional effects of the minimum wage are analyzed in a model where skilled and unskilled labor enter the production function. It is argued that distributional goals are best achieved by letting the labor market clear and achieving redistribution through taxes and transfers.
Aggregate Factor Income Distribution --- Demand and Supply of Labor: General --- Income distribution --- Income economics --- Income inequality --- Income --- Labor market --- Labor markets --- Labor --- Labour --- Macroeconomics --- Minimum wage --- Minimum wages --- Mobility, Unemployment, and Vacancies: Public Policy --- National accounts --- Policy Coordination --- Policy Designs and Consistency --- Policy Objectives --- Unemployment --- Unemployment: Models, Duration, Incidence, and Job Search --- Wages, Compensation, and Labor Costs: Public Policy --- United Kingdom
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While unemployment rates in Europe declined after the global financial crisis until 2018/19, the incidence of long-term unemployment, the share of people who have been unemployed for more than one year to the total unemployed, remained high. Moreover, the COVID-19 pandemic could aggravate the long-term unemployment. This paper explores factors associated with long-term unemployment in European countries, using panel of 25 European countries over the period 2000–18. We find that skill mismatches, labor market matching efficiency, and labor market policies are associated with the incidence of long-term unemployment. Among different types of active labor market policies, training and start-up incentives are found to be effective in reducing long-term unemployment.
Labor --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Unemployment: Models, Duration, Incidence, and Job Search --- Mobility, Unemployment, and Vacancies: Public Policy --- Demand and Supply of Labor: General --- Labor Economics Policies --- Labour --- income economics --- Labor markets --- Labor market policy --- Active labor market policies --- Labor market --- Manpower policy --- Economic theory --- Greece
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While unemployment rates in Europe declined after the global financial crisis until 2018/19, the incidence of long-term unemployment, the share of people who have been unemployed for more than one year to the total unemployed, remained high. Moreover, the COVID-19 pandemic could aggravate the long-term unemployment. This paper explores factors associated with long-term unemployment in European countries, using panel of 25 European countries over the period 2000–18. We find that skill mismatches, labor market matching efficiency, and labor market policies are associated with the incidence of long-term unemployment. Among different types of active labor market policies, training and start-up incentives are found to be effective in reducing long-term unemployment.
Greece --- Labor --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Unemployment: Models, Duration, Incidence, and Job Search --- Mobility, Unemployment, and Vacancies: Public Policy --- Demand and Supply of Labor: General --- Labor Economics Policies --- Labour --- income economics --- Labor markets --- Labor market policy --- Active labor market policies --- Labor market --- Manpower policy --- Economic theory --- Income economics
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This paper considers various dimensions and sources of gender inequality and presents policies and best practices to address these. With women accounting for fifty percent of the global population, inclusive growth can only be achieved if it promotes gender equality. Despite recent progress, gender gaps remain across all stages of life, including before birth, and negatively impact health, education, and economic outcomes for women. The roadmap to gender equality has to rely on legal framework reforms, policies to promote equal access, and efforts to tackle entrenched social norms. These need to be set in the context of arising new trends such as digitalization, climate change, as well as shocks such as pandemics.
Women''s Studies' --- Gender Studies --- Wage Level and Structure --- Wage Differentials --- Wages, Compensation, and Labor Costs: Public Policy --- Mobility, Unemployment, and Vacancies: Public Policy --- Labor Discrimination --- Economic Development: Human Resources --- Human Development --- Income Distribution --- Migration --- Technological Change: Choices and Consequences --- Diffusion Processes --- Economics of Gender --- Non-labor Discrimination --- Health: General --- Education: General --- Gender studies --- women & girls --- Social discrimination & equal treatment --- Gender studies, gender groups --- Health economics --- Education --- Women --- Gender inequality --- Gender --- Health --- Sex discrimination --- Sex role --- India --- Sex discrimination in employment. --- Economic development. --- Gender equality. --- Women''s Studies'. --- Gender Studies. --- Wage Level and Structure. --- Wage Differentials. --- Wages, Compensation, and Labor Costs: Public Policy. --- Mobility, Unemployment, and Vacancies: Public Policy. --- Labor Discrimination. --- Economic Development: Human Resources. --- Human Development. --- Income Distribution. --- Migration. --- Technological Change: Choices and Consequences. --- Diffusion Processes. --- Economics of Gender. --- Non-labor Discrimination. --- Health: General. --- Education: General. --- women & girls. --- Social discrimination & equal treatment. --- Gender studies, gender groups. --- Health economics. --- Education. --- Women. --- Gender inequality. --- Gender. --- Health. --- Sex discrimination. --- Sex role. --- India. --- Women in development.
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This paper considers various dimensions and sources of gender inequality and presents policies and best practices to address these. With women accounting for fifty percent of the global population, inclusive growth can only be achieved if it promotes gender equality. Despite recent progress, gender gaps remain across all stages of life, including before birth, and negatively impact health, education, and economic outcomes for women. The roadmap to gender equality has to rely on legal framework reforms, policies to promote equal access, and efforts to tackle entrenched social norms. These need to be set in the context of arising new trends such as digitalization, climate change, as well as shocks such as pandemics.
India --- Sex discrimination in employment. --- Economic development. --- Gender equality. --- India. --- Women in development. --- Women''s Studies'. --- Gender Studies. --- Wage Level and Structure. --- Wage Differentials. --- Wages, Compensation, and Labor Costs: Public Policy. --- Mobility, Unemployment, and Vacancies: Public Policy. --- Labor Discrimination. --- Economic Development: Human Resources. --- Human Development. --- Income Distribution. --- Migration. --- Technological Change: Choices and Consequences. --- Diffusion Processes. --- Economics of Gender. --- Non-labor Discrimination. --- Health: General. --- Education: General. --- women & girls. --- Social discrimination & equal treatment. --- Gender studies, gender groups. --- Health economics. --- Education. --- Women. --- Gender inequality. --- Gender. --- Health. --- Sex discrimination. --- Sex role. --- Diffusion Processes --- Economic Development: Human Resources --- Economics of Gender --- Education --- Education: General --- Gender inequality --- Gender Studies --- Gender studies --- Gender studies, gender groups --- Gender --- Health economics --- Health --- Health: General --- Human Development --- Income Distribution --- Labor Discrimination --- Migration --- Mobility, Unemployment, and Vacancies: Public Policy --- Non-labor Discrimination --- Sex discrimination --- Sex role --- Social discrimination & equal treatment --- Technological Change: Choices and Consequences --- Wage Differentials --- Wage Level and Structure --- Wages, Compensation, and Labor Costs: Public Policy --- Women & girls --- Women --- Women's Studies
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This paper proposes an ex ante evaluation of the effects of new labor contracts such as the "Contrat Nouvelle Embauche" (CNE) introduced in France in 2005. The lessons we draw are of sufficiently general interest to be applicable to other countries or reforms of employment protection laws. Using a model that captures the characteristics of the French labor market, we simulate the effects of this reform on unemployment, employment, and welfare. We estimate that the CNE will lead to the creation of 70,000 additional jobs in the long run, but at the cost of a slight deterioration in welfare.
Labor contract --- Job creation --- Labor laws and legislation --- Creating jobs --- Employment creation --- Full employment policies --- Labor --- Macroeconomics --- Demand and Supply of Labor: General --- Labor Contracts --- Unemployment: Models, Duration, Incidence, and Job Search --- Unemployment Insurance --- Severance Pay --- Plant Closings --- Mobility, Unemployment, and Vacancies: Public Policy --- Labor Force and Employment, Size, and Structure --- Labor Economics: General --- Labor Demand --- Labour --- income economics --- Labor markets --- Labor force --- Unemployment --- Labor market --- Labor economics --- France --- Income economics
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This paper examines the determinants of Italian unemployment by estimating and utilizing a structural vector autoregressive (VAR) model. Both long-run and short-run macroeconomic determinants of unemployment are examined; the latter are analyzed in much greater detail than is customary in the literature. The relative contribution of long-run and short-run causes is quantified and the different time horizons over which they operate are identified. Policies affecting labor market performance are described and their effect estimated whenever data permit; policy implications are also drawn whenever possible. The most recent labor market reforms together with the atypical effects of the most recent recession are examined, and forecasts of unemployment are produced. A number of scenarios are also constructed to highlight the effect of alternative labor market arrangements.
Labor --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Wages, Compensation, and Labor Costs: Public Policy --- Labor-Management Relations, Trade Unions, and Collective Bargaining: Public Policy --- Mobility, Unemployment, and Vacancies: Public Policy --- Unemployment: Models, Duration, Incidence, and Job Search --- Wages, Compensation, and Labor Costs: General --- Labor Force and Employment, Size, and Structure --- Demand and Supply of Labor: General --- Labour --- income economics --- Labor force --- Labor markets --- Labor market --- Economic theory --- Italy --- Income economics
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This paper reviews conceptual linkages between taxation and unemployment, available empirical evidence and country policies that may have a bearing on these linkages in the OECD and in a sample of developing and transitional economies, Fund policy advice on these issues, and tax policy options in addressing the unemployment problem. It concludes that the emphasis in policy should be placed on minimizing tax distortions, rather than on formulating activist tax policies to reduce unemployment.
Aggregate Human Capital --- Aggregate Labor Productivity --- Demand and Supply of Labor: General --- Economic theory --- Employment --- Fiscal Policy --- Income economics --- Income tax --- Intergenerational Income Distribution --- Labor economics --- Labor Economics: General --- Labor market --- Labor markets --- Labor taxes --- Labor --- Labour --- Macroeconomics --- Mobility, Unemployment, and Vacancies: Public Policy --- Personal Income and Other Nonbusiness Taxes and Subsidies --- Taxation --- Taxation, Subsidies, and Revenue: General --- Taxes --- Unemployment --- Unemployment: Models, Duration, Incidence, and Job Search --- Wages --- Wages, Compensation, and Labor Costs: Public Policy --- Welfare & benefit systems --- United States
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Empirical research on structural reforms has focused primarily on their impact on growth and productivity. Yet an often-invoked rationale for structural reforms is their impact on external adjustment. This paper finds little evidence that structural reforms improve the current account in the short run, but they can increase the responsiveness and resilience of the economy to external shocks. In particular, elasticities of exports with respect to the real effective exchange rate increase with some structural indicators, suggesting that structural reforms facilitate the reallocation of resources to the tradable sector in response to a negative external shock. The paper concludes that structural reforms, while not having an immediate positive impact on the current account balance, can be an important complement to traditional macroeconomic adjustment.
Economic development --- Econometric models. --- Exports and Imports --- Foreign Exchange --- Macroeconomics --- Empirical Studies of Trade --- Trade and Labor Market Interactions --- Current Account Adjustment --- Short-term Capital Movements --- Open Economy Macroeconomics --- Mobility, Unemployment, and Vacancies: Public Policy --- Trade: General --- Institutions and the Macroeconomy --- International economics --- Currency --- Foreign exchange --- Current account --- Current account balance --- Exports --- Structural reforms --- Real effective exchange rates --- Balance of payments --- International trade --- Macrostructural analysis --- Greece
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Using bilateral data on migration across US metro areas, we find strong evidence that increasing house price and income inequality has reduced long distance migration, the type most linked to jobs. For those migrating uphill, from a less to a more prosperous location, lower mobility is driven by increasing house price inequlity, as the disincentives from higher house prices dominate the incentives from higher earnings. By contrast, increasing income inequality drives the fall in downhill migration as the disincentives from lower earnings dominate the incentives from lower house prices. The model underlines the plight of those trapped in decaying metro areas—those “left behind”.
Emigration and immigration --- History. --- Macroeconomics --- Real Estate --- Demography --- Emigration and Immigration --- Geographic Labor Mobility --- Immigrant Workers --- Mobility, Unemployment, and Vacancies: Public Policy --- Personal Income, Wealth, and Their Distributions --- Housing Supply and Markets --- International Migration --- Aggregate Factor Income Distribution --- Demographic Economics: General --- Property & real estate --- Migration, immigration & emigration --- Population & demography --- Housing prices --- Personal income --- Migration --- Income inequality --- Population and demographics --- Prices --- National accounts --- Housing --- Income --- Income distribution --- Population --- United States
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