Fidrmuc, Jarko; Foster, Neil; Scharler, Johann - In: Journal of International Money and Finance 30 (2011) 4, pp. 660-677
In this paper we examine the role of labour market rigidities in the context of international consumption risk sharing. Stronger labour market regulation may make it easier to borrow against future income, thus allowing shocks to be smoothed to a greater extent. In addition, rigid labour markets...