Labour mobility is one of the keys to a successful currency union – be it within or across nations. This column discusses new evidence showing that the shock-absorbing role of migration has increased in Europe and declined in the US. During the Great Recession, European migration remained high – although not high enough given the vast differences across the Eurozone. Overall, Europe has strengthened this essential adjustment mechanism.
Individuals moving from long-term unemployment into work face a number of challenges. This column discusses the use of temporary in-work support during this transition. Recent experimental evidence has shown the potential for such support to have a positive long-term effect. It can increase not only employment entry but also employment retention, and so may provide a means of addressing the low pay, no pay cycle.
Though trade union density and its trends vary considerably across Western European countries, in most of them the current density has fallen down in comparison to 30 years ago. This column reviews some explanations for the decline of unionisation and discusses some of the challenges unions need to face. Union membership could still be stabilised because it is embedded in social, economic, and political structures of the western European countries.
The gender gap in labour-force participation rates is still not closing up. Among other factors, cultural aspects may play a role. This column describes an experimental study, conducted with women from Italy, on the benefits of formal childcare on outcomes of children. Highly educated women are positively affected by the information about formal childcare. Low-educated mothers, however, do not increase their use of childcare facilities, or their labour supply.
In response to the Great Recession, unemployment insurance has been extended in many countries, but there is controversy over whether such extensions are optimal. Unemployment insurance entails direct fiscal costs, and encourages job seekers to prolong their search. The familiar benefit of unemployment insurance is that it allows the jobless to maintain their consumption. However, by reducing the search effort of other workers, it also improves a given worker’s chance of finding a job. Unemployment insurance extensions appear less costly when these search externalities are considered.
Other Recent Articles:
- Unemployment, labour-market flexibility and IMF advice
- Youth employment: School-to-work transitions
- Great Recession and Dutch immigrant unemployment
- German labour reforms: Unpopular success
- The minimum wage and employment dynamics
- Is deregulating firm entry good for the workers? Which workers?
- Immigration, elderly care and labour-force participation: Can immigration help women retire later?
- The downsizing dilemmas of European employers
- Immigrants reduce geographic inequality
- Moving towards a single contract? Pros, cons and mixed feelings
- Accounting for the ethnic unemployment gap in France and the US
- US labour market: Broken with and without unemployment benefits
- Short-time work: Does it save jobs?
- High home ownership as a driver of high unemployment
- Small isn’t always beautiful: The cost of French regulation
- Job placement and displacement: Evidence from a randomised experiment
- European labour-market reform
- The trend reversal in income inequality and returns to education: How bad is this good news for Latin America?
- Spending, income, and debt responses to minimum-wage hikes
- Policy-related uncertainty: At the root of the lost resilience of Eurozone labour markets?
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- The ECB’s stealth bailoutSinn
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Adelman, 28 October 2013
Reichlin, Giugliano, 7 November 2013