The macroeconomic impact of the French work-sharing reform of 2000 (a reduction of standard working hours in combination with wage subsidies) is analysed. Using avector error correction model (VECM) for several labour market variables, as well as inflation and output, out-of-sample forecasts for 2000/2001 are produced. A comparison of these forecasts - which serve as a benchmark simulation without ...
In this paper we apply standard cartel theory to identify the major institutional stabilizers of Germany's area tariff system of collective bargaining between a single industry union and the industry's employers association. Our cartel analysis allows us to demonstrate that recent labor policy reforms that intend to make labor markets more "flexible" further serve to stabilize the labor cartel while ...
