Search Results

SORT BY: PREVIOUS / NEXT
Author:Delacroix, Alain 

Working Paper
Trade and the (dis)incentive to reform labor markets: the case of reform in the European Union.

In a closed economy general equilibrium model, Hopenhayn and Rogerson (1993) find large welfare gains to removing firing restrictions. We explore the extent to which international trade alters this result. When economies trade, labor market policies in one country spill over to other countries through a change in the terms of trade. This reduces the incentive to reform labor markets. In a policy game over firing taxes between countries, we find that countries optimally choose positive levels of firing taxes. A coordinated elimination of firing taxes yields considerable benefits. This insight ...
Working Papers , Paper 04-18

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

FILTER BY Keywords

European Union 1 items

Labor market 1 items

Trade 1 items

PREVIOUS / NEXT