New Labor Market Realities Require New Workforce Development Policies

The new global labor market

Before the collapse of Soviet Communism, China’s movement toward market capitalism, and India’s decision to undertake market reforms and enter the global trading system, the global economy encompassed roughly half of the world’s population comprising the advanced Organisation for Economic Co-operation and Development (OECD) countries, Latin America and the Caribbean, Africa, and some parts of A...

New Keynesian perspectives on labor market dynamics

We find that demand shocks play an important role for business-cycle fluctuations in unemployment and job vacancies. The reason is that those shocks give a strong incentive to demand-constrained firms to adjust production and thereby labor input. Furthermore we argue that whether real wage rigidity à la Hall [2005. Employment fluctuations with equilibrium wage stickiness. American Economic Revi...

Globalization, Inequality and Labor Market Policies

This paper addresses four questions. First, is globalization associated with more inequality in consumption or earnings? Second, is the labor market an important transmission mechanism? Third, can labor market policies reduce inequality? And fourth, would these policies have important side effects on efficiency? The answers are based on an analytical survey of the literature, including several ...

Labor market policies and job search

2 A sizable share of unemployment can be attributed to frictions in the labor market. The simultaneous existence of vacancies and job seekers proves that job search requires effort and time. To improve the efficiency of this process, many countries offer active labor market policies. Evaluating how these programs affect job prospects of job seekers is crucial for effective policy making and for...

Organizational Effectiveness: New Realities