Roots of the Recent Recoveries: Labor Reforms or Private Sector Forces?

Abstract : It is widely agreed that the natural unemployment rate recovered strongly in several OECD economies in the 1990s while not yet in the others. This paper draws on models by the authors endogenizing the path of the natural rate in order to trace the causes and apportion the credit. The results suggest that the five structural reforms of the labor market urged by the OECD Secretariat were effective and account for some of the recovery where adopted. However, the paper sees most of the recoveries as largely the emergence from structural slump to a structural boom--a boom brought by revived investment in employees, customers and fixed capital. Behind this revival is a recovery of business-asset valuations resulting from improved expectations for productivity growth and, judging by the stock market, hopes for a future lift in business earnings that exceeds extrapolations of the past--both driven by the "new economy."
Document type :
Journal articles
Complete list of metadatas

Cited literature [22 references]  Display  Hide  Download

https://hal-sciencespo.archives-ouvertes.fr/hal-01011185
Contributor : Spire Sciences Po Institutional Repository <>
Submitted on : Monday, June 23, 2014 - 11:59:46 AM
Last modification on : Monday, June 17, 2019 - 6:26:09 PM
Long-term archiving on : Tuesday, September 23, 2014 - 11:10:32 AM

File

2000-1fitoussi.pdf
Explicit agreement for this submission

Identifiers

  • HAL Id : hal-01011185, version 1
  • SCIENCESPO : 2441/5571

Collections

Citation

Jean-Paul Fitoussi, David Jestaz, Edmund S Phelps, Gylfi Zoega. Roots of the Recent Recoveries: Labor Reforms or Private Sector Forces?. Brookings Papers on Economic Activity, Brookings Institution Press, 2000, pp.237-311. ⟨hal-01011185⟩

Share

Metrics

Record views

315

Files downloads

285