The Political Economy of Labour Market Institutions
By (author) Gilles Saint-Paul
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Political Economy of Labour Market Institutions by Gilles Saint-Paul
Book DescriptionAccording to most orthodox economists, labour market rigidities are the key culprit for such high unemployment as has been observed in Europe during the past three decades. But governments that have attempted to follow the standard prescription of removing rigidities have often faced harsh political opposition. This book looks at why labour market institutions such as employment protection, unemployment benefits, and relative wage rigidities exist, what role they play in society, why they seem so persistent, where the pressure to reform them comes from, and whether reform can be politically viable or not. The book ascribes a central role to the existence of underlying microeconomic frictions and to redistributive pressures between rich and poor, and shows how these ingredients may give rise to labour market rents, which in turn explain why a coherent set of rigidities arise as the outcome of the political process. It is also shown that, at the same time, such rents create resistance to reform, and contribute to locking society into a high-unemployment, rigid equilibrium. Finally, the basic principles exposed in the book are used to discuss various strategies for a successful labour market reform.
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Book DetailsISBN: 9780198293323
(224mm x 146mm x 20mm)
Imprint: Oxford University Press
Publisher: Oxford University Press
Publish Date: 28-Sep-2000
Country of Publication: United Kingdom
Books By Author Gilles Saint-Paul
Tyranny of Utility, Hardback (July 2011)
Examines how developments in economics and the social sciences lead to greater government intrusion in our private lives. Exploring how behavioral economics contributes to the excessive rise of paternalistic interventions, this title presents a controversial challenge to the prevailing currents in economic and political discourse.
Innovation and Inequality, Hardback (May 2008)
Offers a theoretical analysis of the important mechanisms by which technical progress and innovation affect the distribution of income. This book shows how the structure of demand changes as the economy becomes wealthier, in ways that may potentially harm the poorest segments of the workforce and economy.
Dual Labor Markets, Hardback (March 1997)» View all books by Gilles Saint-Paul
This text considers the macroeconomic implications of the dual market. It uses theoretical models to analyze such policy issues as the level and persistence of unemployment, the level of real wages, and the political viability of labour market reform in the United States and Europe.
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Author Biography - Gilles Saint-Paul
Gilles Saint-Paul is professor of economics at Universitat Pompeu Fabra, Barcelona, Spain, and a research fellow of CEPR, London, and IZA, Bonn. He earned his Ph.D. at MIT and then worked as a researcher at CERAS and DELTA in Paris before moving to Barcelona. He has been a visiting professor at MIT, UCLA, and CEMFI in Madrid. He has served as a consultant for the IMF, the Spanish Ministry of Labour, the UK Treasury, and the Swedish Parliamentary Committee on labour market policy.
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