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Labor and Product Market Reforms in Advanced Economies [electronic resource]: Fiscal Costs, Gains, and Support.

Author/Creator:
Banerji, Angana
Publication:
Washington, D.C. : International Monetary Fund, 2017.
Series:
IMF eLibrary
Staff Discussion Notes
Staff Discussion Notes
Format/Description:
Government document
Book
1 online resource (120 p.)
Summary:
Product and labor market reforms are needed to lift persistently sluggish growth in advanced economies. But reforms have progressed slowly because of concerns about their distributive and short-term economic effects. Our analysis, based on new empirical and numerical analysis and country case-studies shows that most labor and product market reforms can improve public debt dynamics over the medium-term. This because reforms raise output by boosting employment and/or labor productivity. But the effect of some labor market reforms on budgetary outcomes and fiscal sustainability depends critically on business cycle conditions. Our evidence also suggests that some temporary and well-designed up-front fiscal stimulus can help enhance the economic impact of reforms. In the past, countries have used fiscal incentives in the past to facilitate reforms by alleviating transition and social costs. But strong ownership of reforms was crucial for their successful implementation.
Notes:
Part of the IMF eLibrary collection.
Description based on print version record.
Contributor:
Banerji, Angana
Other format:
Print Version: Banerji, Angana Labor and Product Market Reforms in Advanced Economies: Fiscal Costs, Gains, and Support
ISBN:
1475583974
9781475583977
ISSN:
2221-030X
Publisher Number:
10.5089/9781475583977.006 doi
Access Restriction:
Restricted for use by site license.
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