Arbeitspapier

Labor Market Reforms and Current Account Imbalances - Beggar-thy-Neighbor Policies in a Currency Union?

Member countries of the European Monetary Union (EMU) initiated wideranging labor market reforms in the last decade. This process is ongoing as countries that are faced with serious labor market imbalances perceive reforms as the fastest way to restore competitiveness within a currency union. This fosters fears among observers about a beggar-thy-neighbor policy that leaves non-reforming countries with a loss in competitiveness and an increase in foreign debt. Using a two-country, two-sector search and matching DSGE model, we analyze the impact of labor market reforms on the transmission of macroeconomic shocks in both, non-reforming and reforming countries. By analyzing the impact of reforms on foreign debt, we contribute to the debate on whether labor market reforms increase or reduce current account imbalances.

ISBN
978-3-86788-579-9
Sprache
Englisch

Erschienen in
Series: Ruhr Economic Papers ; No. 505

Klassifikation
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Business Fluctuations; Cycles
Unemployment: Models, Duration, Incidence, and Job Search
Current Account Adjustment; Short-term Capital Movements
Thema
current account deficit
labor market reforms
DSGE models
search and matching labor market

Ereignis
Geistige Schöpfung
(wer)
Baas, Timo
Belke, Ansgar
Ereignis
Veröffentlichung
(wer)
Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
(wo)
Essen
(wann)
2014

DOI
doi:10.4419/86788579
Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Baas, Timo
  • Belke, Ansgar
  • Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)

Entstanden

  • 2014

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