Employment and the Great Recession: The Role of Real Wages

Bakker, Bas

doi:10.5089/9781513504100.001

Cited by 7 publications

(5 citation statements)

References 9 publications

(7 reference statements)

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“…Loayza (2018) argues that in the absence of unemployment insurance or an adequate social safety net, a low elasticity of unemployment to GDP growth can mitigate the adverse social impacts of recessions (such as increased poverty and crime). It is important to note that this finding is also consistent with Bakker (2015) which shows that low Okun coefficients are also consistent with the capacity of real wages to adjust to structural change in employment when the economy slows down, as the high informality in CAPDR allows for wage flexibility in the informal sector.…”

Section: Unemployment and Informality Over Business Cycle Fluctuationssupporting

confidence: 77%

How to Mitigate the Impact of Economic Downturns on Labor Markets: Evidence from Nicaragua

Marcelino¹,

Sans²

2023

IMF Working Papers

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Section: Unemployment and Informality Over Business Cycle Fluctuationssupporting

confidence: 77%

How to Mitigate the Impact of Economic Downturns on Labor Markets: Evidence from Nicaragua

Marcelino¹,

Sans²

2023

IMF Working Papers

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“…Cyclical unemployment in most European economies can also be explained well by Okun's Law (Arpaia, Kiss, and Turrini 2014;and Bakker 2016), as can a large part of the increase in youth unemployment seen during the Great Recession (Banerji, Saksonovs, Lin, and Blavy 2014).…”

Section: Does Growth Create Jobs? Evidence For Advanced and Developinmentioning

confidence: 93%

IMF Research Bulletin, September 2016

Fund¹

2016

IMF Research Bulletin

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Global job creation remains sluggish, prompting calls for policy actions to raise economic growth. Will growth create jobs? Recent IMF research documents a striking variation among countries in the extent to which employment responds to GDP growth over the course of a year. In some countries, labor markets are quite responsive: when growth picks up, employment goes up and unemployment falls; in other countries the response is quite muted. Thus, a pickup in growththrough aggregate demand stimulus for instance-will result in more jobs, but the extent of job creation in the short run could vary sharply across countries. Some structural measures can thus serve as useful complementary policies, as also discussed in IMF research. The global unemployment rate increased sharply during the Great Recession to a peak of 6.2 percent in 2009 (Figure 1a). The increase in unemployment in

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“…They are important also in terms of competitiveness. Helplessness against shocks in respect of wages could cause a stronger increase in unemployment (Bakker, 2015). The flexible working time schemes and wage setting mechanisms should be highlighted among the instruments designed to dampen the effects of shocks, as they have the potential to mitigate the impacts on employment.…”

Section: Vulnerability To Shocksmentioning

confidence: 99%

Resilience in Focus : Certain Mechanisms of the Deepening of the Economic and Monetary Union

Halmai¹

2021

PFQ

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The economic resilience - the flexibility of the economy and also the capability of resistance to shocks - is a central category of European reform processes. It contains proactive and reactive dimension, as well as the necessity of adaptation to the new circumstances. The study examines the basic dimensions of resilience: vulnerability factors, shock absorption and the ability to recover, and finds that the efficiency of the interactions and synergy of the deep integration system is determined by the interconnected mechanisms of convergence and resilience. Approaching resilience may show a new direction to national economic policies. With the increase of resilience of certain member states, the structural reforms at national level could decrease (reduce) the expense of the anti-cyclical (national fiscal or common monetary) policies in stabilizing of the Eurozone’s economies.

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Employment and the Great Recession: The Role of Real Wages

Cited by 7 publications

References 9 publications

How to Mitigate the Impact of Economic Downturns on Labor Markets: Evidence from Nicaragua

How to Mitigate the Impact of Economic Downturns on Labor Markets: Evidence from Nicaragua

IMF Research Bulletin, September 2016

Resilience in Focus : Certain Mechanisms of the Deepening of the Economic and Monetary Union

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