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Back in work, still out of pocket: Labour market recovery since the Great Recession

Scarpetta, Stefano, Keese, Mark, Swaim, Paul, (2016), “Back in work, still out of pocket: Labour market recovery since the Great Recession”, Voxeu, 25 Ιουλίου

The labour market recovery in OECD countries has been steady but slow since the Great Recession. More worrying is the fate of wage growth over the same period. This column assesses the implications of stagnation in the labour market for growth, wages, and inequality. It finds that structural weaknesses in labour market performance have become more visible as markets recover from the Great Recession. The policy response must include macroeconomic policies aimed at strengthening investment, and structural policies to support growth while nudging workers towards higher-skilled jobs.

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