Cover IMF Working Papers
Buy Book in Print
Policy Complementarities: The Case for Fundamental Labor Market Reform
Author:
Mr. Dennis J. Snower null

Search for other papers by Mr. Dennis J. Snower in
Current site
Google Scholar Close
and
Mr. David T. Coe
Search for other papers by Mr. David T. Coe in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 1996: Issue 093
Language:
English
Publication Date:
01 Aug 1996
DOI:
https://doi.org/10.5089/9781451951257.001
ISBN:
9781451951257
ISSN:
1018-5941
Pages:
40
Keywords:
WP; labor market; negative income tax; replacement ratio; policy complementarity; UB system; unemployment effect; skilled worker; equilibrium equation; unemployment policy; unemployment-reducing policy; unemployment equilibrium equation; unemployment equilibrium; labor market equilibrium; unemployment benefit reform; unemployment benefit replacement; Labor markets; Unemployment; Unemployment benefits; Unemployment rate; Wages; Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (2.4 MB) Download Epub
This paper argues that an important group of labor market policies are complementary in the sense that the effect of each policy is greater when implemented in conjunction with the other policies than in isolation. This may explain why the diverse, piecemeal labor market reforms in many European countries in recent years have had so little success in reducing unemployment. What is required instead is deeper labor market reforms across a broader range of complementary policies and institutions. To be politically feasible, these reforms must be combined with measures to address distributional issues.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund