The fourth ISIGrowth Policy Brief highlights the main findings of the project focusing on the relationship between the organization of labour markets, technological change and income distribution
Do more flexible labour markets foster innovation and growth? Historically, measures of flexibilization have often been accompanied by two other policy strategies, namely austerity policies, largely pursued to counteract the sovereign debt crisis, and active labour market polices meant to lubricate supposedly sclerotic labour markets. What results did these strategies produce?
The fourth ISIgrowth Policy Brief highlights the main findings of the project focusing on the relationship between the organization of labour markets, technological change and income distribution. Together, it analyses the general failure of supply-side policies aimed at reducing the labour costs and undertaking fiscal consolidations in recessionary/low-growth periods.
In doing so, it presents the results of the project concerning the link between the institutional setups of the labour market and inequality, the occupational impact of technological change, and the deteriorating link between productivity growth and wage growth in the European economies. The analysis is followed by a set of policy proposals.