Giuseppe Bertola, (2016), “Labor policies and capital mobility in theory and in EMU”, European Economic Review Volume 87, August
Europe׳s Economic and Monetary Union (EMU) was characterized by large international imbalances and uneven national labor market reforms. In this paper׳s model, labor policies that aim to increase the welfare of capital-poor individuals within each country are influenced by financial integration across differently capital-abundant countries. The model predicts that capital outflows should be associated with labor market deregulation, as was the case in EMU, and helps interpret inequality developments and policy tensions in that experience.
Relevant posts
- Carrera, S., Guild, E. & Eisele, K. (2014) “Rethinking the Attractiveness of EU Labour Immigration Policies: Comparative perspectives on the EU, the US, Canada and beyond”, Justice and Home Affairs, CEPS Paperbacks, 13 November
- Barslund et al. (2014) “Labour Mobility in the EU: Dynamics, Patterns and Policies”, INTERECONOMICS, Vol 49, No. 3· May/ June 2014.