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(Spillover) Effects of Labour Market Reforms in Germany and France. WWWforEurope Working Paper No. 8

Author

Listed:
  • Claudia Busl
  • Atilim Seymen

    (Centre for European Economic Research)

Abstract

In this paper we analyse the (potential) effects of labour market and fiscal policy reforms by heterogeneous European countries – Germany and France – on the domestic and foreign economy. We test the implications of the gains in matching efficiency and reduced unemployment benefits induced by the German Hartz reforms in a two-country RBC model with frictions in the labour market, which replicates the data quite well. We then explore the reform possibilities in the French labour market and their potential national and international effects by calibrating the model to recent data. Both home and foreign economies benefit from labour market reforms in the home economy in our framework.

Suggested Citation

  • Claudia Busl & Atilim Seymen, 2013. "(Spillover) Effects of Labour Market Reforms in Germany and France. WWWforEurope Working Paper No. 8," WIFO Studies, WIFO, number 46855, March.
    • Handle: RePEc:wfo:wstudy:46855
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    References listed on IDEAS

    as
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    2. Karl Aiginger, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition – Part I: Synthesis. WWWforEurope Deliverable No. 11," WIFO Studies, WIFO, number 58791.
    3. Kurt Kratena & Mark Sommer, 2014. "Labour Market Policy and Environmental Fiscal Devaluation: A Cure for Spain in the Aftermath of the Great Recession?," WIFO Working Papers 476, WIFO.
    4. Karl Aiginger & Kurt Kratena & Margit Schratzenstaller-Altzinger & Teresa Weiss, 2014. "Moving Towards a New Growth Model. WWWforEurope Deliverable No. 3," WIFO Studies, WIFO, number 47247.
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    6. Kurt Kratena, 2015. "Thematic Report: Macroeconomic Models Including Specifically Social and Environmental Aspects. WWWforEurope Deliverable No. 8," WIFO Studies, WIFO, number 58411, March.
    7. Kurt Kratena & Mark Sommer, 2014. "Model Simulations of Resource Use Scenarios for Europe. WWWforEurope Deliverable No. 5," WIFO Studies, WIFO, number 47503.

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