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Europe > Ireland

You are looking at 1 - 2 of 2 items for :

  • Type: Journal Issue x
  • Wages, Compensation, and Labor Costs: Public Policy x
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Cover IMF Research Bulletin
IMF Research Bulletin, June 2012
International Monetary Fund. Research Dept.
The research summaries in the June 2012 issue of the IMF Research Bulletin are "Public Debt in Advanced Economies and Its Spillover Effects on Long-Term Yields" (by C. Emre Alper and Lorenzo Forni) and "Expansionary Fiscal Contractions: The Empirical Evidence" (by Rina Bhattacharya and Sanchita Mukherjee). The Q&A covers "Seven Questions about Income Inequality" (by Laura Feiveson). Also included in this issue are details on visiting scholars at the IMF, a listing of recently published IMF Working Papers and Staff Discussion Notes, as well as information on IMF Economic Review.
Keywords:
IMF research; e-mail notification; open economy macroeconomics; IMF RESERCH; research Department e-mail; Income inequality; Income distribution; Fiscal consolidation; Income; Global; Europe
Cover IMF Working Papers
Product Market Regulation and the Benefits of Wage Moderation
Mr. Marcello M. Estevão
Euro-area real wages have decelerated sharply in the last 20 years, but this has not yet translated into visibly lower unemployment or faster growth. Weak output growth after such a cost shock is somewhat puzzling and has led some to question the benefits of wage moderation. By isolating structural from cyclical factors in a panel of industrial countries, I show that structurally slower real wage growth, that is, "wage moderation," does raise output growth and lower unemployment rates. However, I show that the impact on both variables depends crucially on product market regulation: weaker competition and barriers to entry mute the growth effects of structural real wage changes by allowing incumbent firms to appropriate larger rents. In this context, overly regulated product markets in the euro area are undermining the effects of labor market reforms on output and employment.
Keywords:
WP; product market; product market regulation; wage curve; labor market reform; Structural change; labor market; reforms; sequencing product market; wage-curve shift; product market reform; product market competition; Commodity markets; Wages; Wage bargaining; Unemployment rate; Real wages