Labor Market Institutions and Public Regulation

The six studies collected in this CESifo volume analyse the sometimes unpredictable effects of public regulation on the labour market. Examining a wide range of policy interventions—from subsidised employment to an increased tax on capital— and using a variety of methodologies to analyse them, these contributions by leading scholars of the European labour market will advance the policy debate over regulation at a time of serious labour market problems in Europe and elsewhere. The first three chapters of this book present empirical findings, comparing the effects of job training and subsidised employment on the Swedish labour market, analysing the effect of extended unemployment benefits on unemployment duration for older Austrian workers, and examining poor labour market performance in Spain even after policy reforms. The following chapters take a more theoretical approach, applying the analytical tools of theory to policy issues. These three studies examine the general equilibrium repercussions of public support for both basic and higher education, develop an efficiency wage model to analyse mandated severance pay, and compare different kinds of redistribution to low-skill workers financed by an increased tax on capital.