International Spillover of Labor Market Reforms
IMF Working Papers, April 1, 2008
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- Canonical URL
- International Spillover of Labor Market Reforms
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Bibliographic details
- Authors: Mai Dao
- Published: April 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451869736.001
Research question and model
- Uses a dynamic economy model with unionized labor markets to analyze the effects of labor market reforms, similar to those recently introduced in Germany, on the domestic and trading partner economies.
- The model is calibrated on Germany and the rest of the Euro area.
- Comparison undertaken between unionized labor market settings and a competitive labor market.
Key findings
- German labor market reforms have positive spillover effects on the rest of the Euro area.
- Spillover channels identified:
- Trade
- Relative price adjustment
- Financial market integration
- Unionization effects:
- Compared to a competitive labor market, unionization dampens the positive response of the domestic economy.
- Unionization magnifies the spillover effects to trading partners.
Subjects and keywords
- Subjects: Consumption, Employment, Labor markets, Terms of trade, Wages
- Keywords: labor market, real interest rate, WP
International Spillover of Labor Market Reforms — IMF Working Paper No. 2008/113
Content in this bundle
- International Spillover of Labor Market Reforms; Mai Dao; IMF Working Paper 08/113; April 1, 2008