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Interventions in labour markets: An overview

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  • Donges, Juergen B.
  • Spinanger, Dean

Abstract

The starting point of this overview is the contention that unemployment problems in industrial countries can be attributed to a significant extent to distortions in the labour market. These interventions have caused the level and structure of real wages to not adequately reflect the productivity of labour and the differences of skills in the labour force. Myriads of laws and regulations, most of which have been implemented in the course of creating the modern Welfare State, have made it very expensive for firms to hire labour, have made it unattractive for some employees to change jobs between firms or regions and have made it lucrative for others not to work. The purpose of this paper is to discuss the impact of government and trade union policies on the labour market and thus on employment. The analysis will focus on policies (i) directly influencing pay levels, (ii) directed toward job rights, (iii) concerned with job environment, and (iv)i dealing with social aspects.

Suggested Citation

  • Donges, Juergen B. & Spinanger, Dean, 1983. "Interventions in labour markets: An overview," Kiel Working Papers 175, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:175
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    References listed on IDEAS

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    1. Orley Ashenfelter, 1978. "Union Relative Wage Effects: New Evidence and a Survey of their Implications for Wage Inflation," International Economic Association Series, in: Richard Stone & William Peterson (ed.), Econometric Contributions to Public Policy, chapter 2, pages 31-63, Palgrave Macmillan.
    2. Fishe, Raymond P H, 1982. "Unemployment Insurance and the Reservation Wage of the Unemployed," The Review of Economics and Statistics, MIT Press, vol. 64(1), pages 12-17, February.
    3. Olivia S. Mitchell, 1982. "The Labor Market Impact of Federal Regulation: OSHA, ERISA, EEO, and Minimum Wage," NBER Working Papers 0844, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Bela Balassa, 1984. "The economic consequences of social policies in the industrial countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 120(2), pages 213-227, June.
    2. Spinanger, Dean, 1984. "The labor market in Panama: An analysis of the employment impact of the labor code," Kiel Working Papers 221, Kiel Institute for the World Economy (IfW Kiel).

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