Unemployment Hysteresis, Wage Determination, and Labor Market Flexibility : The Case of Belgium
This paper examines the potential contribution of unemployment hysteresis theories to the understanding of the Belgian labor market. It estimates models of wage determination using aggregate and firm-level panel data. Two main conclusions emerge: (i) the long-term unemployed do not exert a negative impact on wages; and (ii) there is some evidence that the incumbent workers, the “insiders,” exercise market power in wage determination, taking greater account of their own interests than those of the unemployed “outsiders.” In addition, it is argued that the automatic indexation of wages to prices in Belgium can cause a downward rigidity in real wages, given the multi-tier real wage bargaining process. Recent initiatives, including the introduction of a competitiveness norm for indexation, and labor market programs aimed at the long-term unemployed and the young, such as the plan d’accompagnement and the plan d’embauche des jeunes, are appropriate in view of the existence of insider power in wage determination
Year of publication: |
1994
|
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Institutions: | International Monetary Fund ; International Monetary Fund (contributor) |
Publisher: |
Washington, D.C : International Monetary Fund |
Subject: | Belgien | Belgium | Arbeitslosigkeit | Unemployment | Hysterese | Hysteresis | Langzeitarbeitslosigkeit | Long-term unemployment | Lohnpolitik | Wage policy | Lohnindexierung | Wage indexation | Arbeitsmarktflexibilität | Labour market flexibility | Arbeitsmarkt | Labour market |
Saved in:
freely available
Extent: | Online-Ressource (34 p) |
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Series: | IMF working papers. - Washington, DC : IMF, ZDB-ID 2108494-4. - Vol. Working Paper No. 94/150 |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Arbeitspapier ; Working Paper |
Language: | English |
ISBN: | 1-4518-5693-8 ; 978-1-4518-5693-4 |
Other identifiers: | 10.5089/9781451856934.001 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014398156
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