Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This Selected Issues paper on the Kingdom of the Netherlands reviews the cyclical position of the Dutch economy, and provides a comparison of different estimates of the nonaccelerating inflation rate of unemployment and the potential output. The study analyzes the adjustment mechanisms embedded in the central projections of a number of forecasters, and investigates the sensitivity of the outlook to upside demand risks using macroeconometric models. The paper also evaluates the effect of changes in the monetary and fiscal policies, key features of labor, and asset markets.

Inflation --- Labor --- Wages, Compensation, and Labor Costs: General --- Demand and Supply of Labor: General --- Unemployment: Models, Duration, Incidence, and Job Search --- Price Level --- Deflation --- Labour --- income economics --- Macroeconomics --- Labor costs --- Labor markets --- Wages --- Unemployment --- Prices --- Labor market --- Netherlands, The

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Growth in the Austrian economy decelerated in mid-2000 in tandem with weaker activity in Europe after a vigorous expansion. Privatization of state holdings in commercial enterprises has continued, and liberalization of the electricity and gas markets is planned to be completed well ahead of EU deadlines. In light of pressures to reduce the tax burden and narrow the scope of the public sector’s direct economic involvement, Executive Directors recommended a long-term focus on the fiscal policy debate and encouraged the authorities for their civil service.

Labor --- Macroeconomics --- Public Finance --- Fiscal Policy --- National Government Expenditures and Related Policies: General --- Demand and Supply of Labor: General --- Public finance & taxation --- Labour --- income economics --- Expenditure --- Fiscal policy --- Fiscal consolidation --- Labor markets --- Fiscal stance --- Expenditures, Public --- Labor market --- Austria

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper presents an empirical model to study the response of wages and prices to movements in the nominal exchange rate. A four-equation model is applied to Italian data to evaluate the response of tradeable goods prices, consumer prices, and wages following the lira’s exit from the ERM in the fall of 1992. The model tracks reasonably well the inflation performance of tradeables, especially import prices. But it is argued that structural changes in the labor market contribute to an overprediction of price and wage inflation.

Inflation --- Labor --- Macroeconomics --- Price Level --- Deflation --- Trade: General --- Foreign Exchange --- Macroeconomic Aspects of International Trade and Finance: Forecasting and Simulation --- Wages, Compensation, and Labor Costs: General --- Demand and Supply of Labor: General --- Labour --- income economics --- Import prices --- Wages --- Labor markets --- Consumer prices --- Prices --- Export prices --- Imports --- Labor market --- Exports --- Italy

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

We analyze labor market models where the law of one price does not hold-that is, models with equilibrium wage dispersion. We begin by assuming workers are ex ante heterogeneous, and highlight a flaw with this approach: if search is costly, the market shuts down. We then assume workers are homogeneous, but matches are ex post heterogeneous. This model is robust to search costs, and it delivers equilibrium wage dispersion. However, we prove the law of two prices holds: generically, we cannot get more than two wages. We explore several other models, including one combining ex ante and ex post heterogeneity, which is robust and can deliver more than two-point wage distributions.

Electronic books. -- local. --- Labor market -- Econometric models. --- Wages -- Econometric models. --- Econometrics --- Labor --- Wages, Compensation, and Labor Costs: General --- Unemployment: Models, Duration, Incidence, and Job Search --- Demand and Supply of Labor: General --- Bargaining Theory --- Matching Theory --- Labour --- income economics --- Econometrics & economic statistics --- Wages --- Unemployment --- Labor markets --- Search models --- Unemployment rate --- Labor market --- Equilibrium --- Economics

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

A more market-oriented labor market has emerged in China in the past twenty years with growing importance of the urban private sector, as state-owned enterprises have downsized. Despite the progress on reforms, a sizable surplus of labor still exists in the rural sector and state-owned enterprises. The main challenge facing China’s labor market in coming years is to absorb the surplus labor into quality jobs while adjusting to World Trade Organization (WTO) accession. This paper estimates that if annual GDP growth averages 7 percent and the employment elasticity is one-half, urban unemployment could double to about 10 percent over the next three to four years. These pressures would be limited by stronger economic growth, especially in the private sector and more labor-intensive service industries which have generated the most jobs in recent years. Therefore, policy should focus on encouraging private sector development while reducing barriers to labor mobility, improving worker skills, upgrading job search services, and strengthening the social safety net.

Labor market --- Unemployment --- Labor --- Macroeconomics --- Demand and Supply of Labor: General --- Unemployment: Models, Duration, Incidence, and Job Search --- Employment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Labor Force and Employment, Size, and Structure --- Labor Economics: General --- Labour --- income economics --- Labor force --- Labor markets --- Economic theory --- Labor economics --- China, People's Republic of