| Author (Person) | Monteiro, Paulo Santos |
|---|---|
| Author (Corporate) | European Commission: DG Economic and Financial Affairs |
| Publisher | Publications Office of the European Union |
| Series Title | European Economy: Discussion Papers |
| Series Details | Number 061 |
| Publication Date | 20/07/2019 |
| ISSN | 2443-8022 |
| Content Type | Research Paper |
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Summary: This paper proposes a method to identify how labour market institutions and product market regulation interact with economic shocks, and affect unemployment and wage dynamics during periods of external imbalances corrections. This is done using a general equilibrium model of trade, external imbalances and unemployment that incorporates labour market frictions via a structural wage equation, and implies equilibrium cross-sectional dispersion of unemployment rates. We apply the method to study the role of macroeconomic shocks, labour market institutions and product market regulation in the correction of external imbalances in the European Monetary Union (EMU) over the last decade, and the concurrent heterogeneous unemployment dynamics. |
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| Source Link |
Link to Main Source
https://ec.europa.eu/info/publications/economy-finance/external-imbalances-and-wage-curve_en
Alternative sources
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| Subject Categories | Economic and Financial Affairs |
| Subject Tags | Economic and Monetary Union [EMU], Labour Market |
| Countries / Regions | Europe |
| International Organisations | European Union [EU] |
