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Labor Markets in the European Union

By Giuseppe Bertola


: This paper addresses aspects of the interaction between labor market institutions and the process of Economic and Monetary Union in Europe. It reviews the nature and possible motivation of institutions which limit both wage and employment flexibility in Europe, with particular attention to the geographic dimensions of labor market rigidity. As a fully integrated economic area, the European Union is in many ways comparable to the United States. Institutionally compressed regional wage differentials and limited labor mobility within each European nation contrast sharply with U.S. labor market patterns, however. In the aftermath of EMU, European labor markets will need to be different from their own past selves, but may find it politically difficult to approach their American counterparts. * Background paper for a Lecture at EALE 1999 (Regensburg). Earlier versions were presented at a Georgetown University conference on "The Impact of Increased Economic Integration on Italy..

Year: 1999
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