With unemployment rising and potential growth faltering, labor market reform has become more necessary than ever in OECD countries. Divergences remain however vivid regarding the direction of reforms: Which labor contracts? What role for labor taxation? Which minimum wages? What role for labor...

European Governments made substantial efforts to reform labor market institutions when walking away from the Eurosclerosis of the 1980s. To achieve political viability, the reforms mostly entailed changing the rules only for new hires and introducing a wide array of new flexible, fixed-term,...