An article published by the Socio Economic Review highlights the negative effects of labour market structural reforms upon unemployment and income inequalities
ISIGrowth findings on the effects of labour market reforms upon unemployment and income inequalities have been published by the Oxford University Press. The article – The effects of labour market reforms upon unemployment and income inequalities: an agent-based model –is open access and freely downloadable from the Oxford Socio-Economic Review website.
All through the recent European crisis, the economic policy debate has been marked by the emphasis on the need of labour market structural reforms. The article – based on the ISIGrowth working paper ‘The Effects of Labour Market Reforms upon Unemployment and Income Inequalities: an Agent Based Model‘ by Giovanni Dosi, Marcelo C. Pereira, Andrea Roventini and Maria Enrica Virgillito – studies the impact of structural reforms aimed at increasing the flexibility of the labour market by means of the labour-augmented ‘Schumpeter meeting Keynes’ (K+S) Agent-Based model. The paper shows that such policies have a negative impact on the macroeconomic performance of the economy, increasing output volatility, unemployment and inequality.
Download here the article