Citation

Discussion Paper Details

Please find the details for DP3646 in an easy to copy and paste format below:

Full Details

Title: Macroeconomic Fluctuations and the Timing of Labour Market Reforms

Author(s): Gilles Saint-Paul

Publication Date: November 2002

Keyword(s): employment protection, firing costs, labour market reforms, monetary union, political economy and unemployment

Programme Area(s): International Macroeconomics and Labour Economics

Abstract: In this Paper, I analyse the pros and cons of implementing structural reforms of the labour market in booms versus recessions, in light of considerations of social efficiency, political viability, and macroeconomic fine-tuning. While the optimal timing of a reform depends on the relative importance of several conflicting effects, it seems clear that a reform should be accompanied by an expansionary macroeconomic policy. This makes structural reform more problematic in the context of the European Monetary Union.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3646

Bibliographic Reference

Saint-Paul, G. 2002. 'Macroeconomic Fluctuations and the Timing of Labour Market Reforms'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3646