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The Efficiency Case for Long-run Labour Market Policies (1980)

In: Tackling Unemployment

Author

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  • R. Jackman

Abstract

Can long-run labour market policies do any good? Or, in other words, is there a role for labour market intervention, independent of the business cycle?1 The test is, of course, whether it could raise the level of welfare consistent with nonaccelerating inflation. One obvious case that calls for intervention is where real wages or relative wages are rigid. But there has been a tendency to suppose that, if wages were flexible, there could be no free lunch.2 We therefore begin with the case of flexible wages, before considering the case of wage rigidity.

Suggested Citation

  • R. Jackman, 1999. "The Efficiency Case for Long-run Labour Market Policies (1980)," Palgrave Macmillan Books, in: Tackling Unemployment, chapter 16, pages 354-376, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-37920-6_16
    DOI: 10.1057/9780230379206_16
    as

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