Previous Chapter Chapter 34: Labor Market Institutions Around the World
It was six men of Hindustan
To learning much inclined,
Who went to see the Elephant
(Though all of them were blind)
That each by observation
Might satisfy the mind. (Saxe)
At the turn of the twenty-first century, questions regarding labor market institutions replaced macro-economic policy at the center of much policy debate in advanced economies. By ascribing the high unemployment in European Union (EU) countries to labor institutions that reduced wage and employment flexibility, the OECD's 1994 Jobs Study (OECD, 1994a, 1994b) directed the attention of policy-makers and economists to institutions that mainstream economics had previously viewed as peripheral to aggregate economic performance. The Jobs Study recommended that countries deregulate labor markets to increase flexibility in working time; make ...