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Labor Markets and Economic Development

In: Economic Reform Now

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  • Heiner Flassbeck

Abstract

Flexibility of labor markets is the most important feature of the mantra of “structural policies” that have again been advocated in troubled countries after the big financial crisis. They were also the key message of the neoliberal revolution that did away with the welfare state and Keynesianism at the same time as rising unemployment during the 1970s. Sometimes it has been argued explicitly that globalization and technological progress require greater wage flexibility in the industrialized countries, given the pressures resulting from the competition of lower-paid workers in developing economies and/or from labor-saving technologies.

Suggested Citation

  • Heiner Flassbeck, 2013. "Labor Markets and Economic Development," Palgrave Macmillan Books, in: Economic Reform Now, chapter 0, pages 55-83, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-36407-4_3
    DOI: 10.1057/9781137364074_3
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