Dismal Employment Growth in EU Countries: The Role of Corporate Balance Sheet Repair and Dual Labor Markets

WPIEA2013179 Image
Price:  $18.00

Author/Editor: Bas B Bakker, Li Zeng
Release Date: © August, 2013
ISBN : 978-1-48431-163-9
Stock #: WPIEA2013179
English
Stock Status: On back-order

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Description

This paper argues that the large differences among EU countries in post-crisis employment performance are to a large extent driven by the need to adjust corporate balance sheets, which had greatly deteriorated during the boom years in some countries but not in others. To close the large gaps between saving and investment, firms reduced investment and cut costs to boost profits. With much of the cost adjustment falling on firms’ wage bills, employment losses were largest in countries under the most intense pressures to improve corporate profitability and with limited wage flexibility due to labor market duality.

Taxonomy

Debt , Economic policy , Fiscal policy




More publications in this series: Working Papers


More publications by: Bas B Bakker ; Li Zeng