Tito Boeri, Juan F Jimeno, 27 July 2015

Structural reforms of labour markets are almost universally advocated by international institutions. This column argues that some of the labour market reforms implemented in Europe during the Crisis were misguided. One problem is that when reforms are imposed on national governments by international institutions, they can backfire. To address this, the authors propose a new way to promote employment policies in Europe, which is based on positive conditionality.

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