Arbeitspapier
Reforms, Finance, and Current Accounts
We analyze the implications of labor market reforms for an open economy's human capital investment and future production. A stylized model shows that labor market deregulation can imply more positive current account balances if financial markets are imperfect and labor market institutions not only distort labor allocation, but also smooth income. Empirically, in OECD country-level panel data, we find that labor market deregulation has been positively related to current account surpluses on average and more strongly so when and where financial market access was more limited. These results are robust to inclusion of standard determinants of current account imbalances, and do not appear to be driven by cyclical phenomena.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 5206
- Classification
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Wirtschaft
Macroeconomic Aspects of International Trade and Finance: General
Mobility, Unemployment, and Vacancies: Public Policy
- Subject
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labor market deregulation
precautionary savings
- Event
-
Geistige Schöpfung
- (who)
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Bertola, Giuseppe
Prete, Anna Lo
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2015
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bertola, Giuseppe
- Prete, Anna Lo
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2015
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