Tolga Aksoy, Paolo Manasse, 23 March 2018

After 2008, labour markets in the euro area responded differently to the recessions and subsequent labour market reforms. This column uses data from 19 countries to show that labour and product market reforms speeded up the recovery from recession, but also reduced the resilience of employment to shocks. Because the resilience effect occurs first, deep reforms risk losing public support.

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.

Giuseppe Bertola, Anna Lo Prete, 28 February 2015

The large international imbalances accumulated in the Eurozone have proven difficult to unwind during the recent Crisis. This column argues that market reforms had a role in generating current account imbalances, and that patterns of relative labour market regulation could be equally important in the aftermath of the Crisis.

Jean Pisani-Ferry, 07 November 2014

A triple-dip recession in the Eurozone is now a distinct possibility. This column argues that additional monetary stimulus is unlikely to be effective, that the scope for further fiscal stimulus is limited, and that some structural reforms may actually hurt growth in the short run by adding to disinflationary pressures in a liquidity trap. The author advocates using tax incentives and tighter regulations to encourage firms to replace environmentally inefficient capital.

Kerem Cosar, Nezih Guner, James Tybout, 07 July 2014

Trade liberalisations are often accompanied by labour market reforms, making it difficult to isolate their effects. This column discusses the effects of trade liberalisation, globalisation, and labour-market reforms on the Colombian labour market. Reduced trade frictions increased cross-firm wage inequality and shifted the firm-size distribution rightward, with offsetting effects on overall wage inequality. Average income increased, but the gains were concentrated among employees of large, productive firms with access to export markets. Greater trade openness also increased job turnover.

Gilles Mourre, Alessandro Turrini, 20 November 2010

The latest developments in Ireland are putting further strain on the Eurozone, with some calling in to question the future of the single currency. The column looks at what the countries on the periphery of the Eurozone, Greece, Ireland, Italy, Portugal, and Spain can do to restore competitiveness.

Gabriel Felbermayr, Mario Larch, Wolfgang Lechthaler, 01 May 2010

How do labour market reforms in one country affect its trading partners? Politicians often appear to assume detrimental spillover effects from labour market reforms abroad. This column argues that recent models of trade and unemployment highlight beneficial linkages, and this is confirmed by empirical work.

Gilles Saint-Paul, 01 February 2008

France has agreed a raft of labour market reforms. Here one of France’s most market-oriented labour economists evaluates the likely impact, concluding that it’s an improvement, but heightens incentives to become unemployed.


CEPR Policy Research