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Wage rigidities, barriers to entry and the welfare state: Their impact on labor markets in industrialized countries

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  • Spinanger, Dean

Abstract

The above quotes exemplify quite well the strange world in which we live: on the one hand governments over the last 30 years have generally attempted to enact measures to liberalize international trade (and as a matter of fact the movement of factors of production) so as to be able to profit - in the form of higher employment levels - from a more efficient allocation of resources. On the other hand, in many of the same countries governments (and/or unions) have effected (or supported) measures for domestic labor markets, the impact of which runs counter to the expected gains from a reduction in trade barriers. In other words, while a rapid expansion of international trade may have contributed significantly to creating employment, measures affecting the training, employment, remuneration and/or social security of the working-age population may well have caused jobs or job opportunities to disappear or job-seeking activities to be otherwise structured.

Suggested Citation

  • Spinanger, Dean, 1983. "Wage rigidities, barriers to entry and the welfare state: Their impact on labor markets in industrialized countries," Kiel Working Papers 188, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:188
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    Cited by:

    1. Schatz, Klaus-Werner & Spinanger, Dean, 1984. "Zonen freier Wirtschaftsaktivität," Kiel Discussion Papers 105, Kiel Institute for the World Economy (IfW Kiel).
    2. Giersch, Herbert, 1985. "Eurosclerosis," Kiel Discussion Papers 112, Kiel Institute for the World Economy (IfW Kiel).
    3. Dicke, Hugo & Trapp, Peter, 1984. "Investment behavior and yields in some West German industries," Kiel Working Papers 205, Kiel Institute for the World Economy (IfW Kiel).
    4. Schatz, Klaus-Werner, 1984. "Die Bedeutung kleiner und mittlerer Unternehmen im Strukturwandel," Kiel Discussion Papers 103, Kiel Institute for the World Economy (IfW Kiel).
    5. Foders, Federico, 1984. "The UN convention on the law of the sea: an inefficient public good supplied by an inefficient organization," Kiel Working Papers 204, Kiel Institute for the World Economy (IfW Kiel).

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