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Labor policies and capital mobility in theory and in EMU

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  • Bertola, Giuseppe

Abstract

"Race-to-the-bottom" deregulation is to be expected when markets operate across the borders of countries that independently choose and enforce labor policies. Less obviously, in pre-crisis EMU reforms of labor market policies were uneven and related to international imbalances. That pattern is readily explained by this paper's model of financial integration between differently capital-abundant countries, within which labor policies benefit individuals with wealth/labor income ratios different from country's aggregate.

Suggested Citation

  • Bertola, Giuseppe, 2014. "Labor policies and capital mobility in theory and in EMU," CEPR Discussion Papers 10088, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:10088
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    Cited by:

    1. Bertola, Giuseppe, 2017. "European unemployment revisited: Shocks, institutions, integration," Research in Economics, Elsevier, vol. 71(3), pages 588-612.
    2. repec:ces:ifofor:v:19:y:2018:i:2:p:03-08 is not listed on IDEAS
    3. Giuseppe Bertola & John Driffill & Harold James & Hans-Werner Sinn & Jan-Egbert Sturm & Ákos Valentinyi, 2015. "Chapter 3: European Regional Disparity: Borders Strike Back," EEAG Report on the European Economy, CESifo, vol. 0, pages 66-77, February.
    4. Giuseppe Bertola, 2018. "Inequality and Market Integration: Direct Effects and Policy Implications in EMU," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 19(02), pages 03-08, July.
    5. Bertola, Giuseppe, 2019. "Wedges: Distribution, distortions, and market integration," European Journal of Political Economy, Elsevier, vol. 59(C), pages 21-32.
    6. Atanu Ghoshray & Mercedes Monfort & Javier Ordóñez, 2020. "Economic integration and the distribution of income in Europe: A between country analysis," Working Papers 2020/11, Economics Department, Universitat Jaume I, Castellón (Spain).
    7. Florentin Kerschbaumer & Andreas Maschke, 2020. "European Monetary Union and Inequality: A Synthetic Control Approach," Working Papers PKWP2024, Post Keynesian Economics Society (PKES).
    8. Philip Arestis & Peter Phelps, 2018. "Inequality implications of European economic and monetary union membership: A reassessment," Environment and Planning A, , vol. 50(7), pages 1443-1472, October.

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    More about this item

    Keywords

    Policy competition; Public choice;

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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