Blucher Engineering Proceedings

Agosto 2018, vol.5, num.1 - III Encontro Nacional de Economia Industrial e Inovação
Artigo - Open Access Idioma principal | Segundo principal

Industrial unemployment, supply-side policies and the perverse interaction of flexibility and austerity

Industrial unemployment, supply-side policies and the perverse interaction of flexibility and austerity

Pereira, Marcelo C.; Dosi, Giovanni; Roventini, Andrea; Virgillito, Maria Enrica

Artigo:

In this work we develop a set of policy experiments upon the well-known \Schumpeter meeting Keynes" agent-based model. The labour market is declined under two institutional industrial-relations variants, the \Fordist" and the \Competitive" set-ups meant to capture the historical transition from the Fordist toward the post \Thatcher-Reagan" period. Inside these two regimes we study the dierent eects of supply-side active labour market policies (ALMPs) vs. demand-management passive labour market ones (PLMPs). In particular, we analyse the eects of supply-side labour market policies aimed at i) promoting job search, and ii) providing training to unemployment people. Next, we compare the eects of those policies vs. unemployment benets aimed at sustaining income and therefore aggregate demand. Our results show that (i) an appropriate level of skills is not enough when workers face adverse labour demand, (ii) supply-side policies are not able to reverse the perverse interaction between  exibility and austerity, and (iii) demand-management policies are better suited to 
mitigate inequality and to improve and sustain long-run growth.

In this work we develop a set of policy experiments upon the well-known \Schumpeter meeting Keynes" agent-based model. The labour market is declined under two institutional industrial-relations variants, the \Fordist" and the \Competitive" set-ups meant to capture the historical transition from the Fordist toward the post \Thatcher-Reagan" period. Inside these two regimes we study the dierent eects of supply-side active labour market policies (ALMPs) vs. demand-management passive labour market ones (PLMPs). In particular, we analyse the eects of supply-side labour market policies aimed at i) promoting job search, and ii) providing training to unemployment people. Next, we compare the eects of those policies vs. unemployment benets aimed at sustaining income and therefore aggregate demand. Our results show that (i) an appropriate level of skills is not enough when workers face adverse labour demand, (ii) supply-side policies are not able to reverse the perverse interaction between  exibility and austerity, and (iii) demand-management policies are better suited to 
mitigate inequality and to improve and sustain long-run growth.

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DOI: 10.5151/enei2018-54

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Como citar:

Pereira, Marcelo C.; Dosi, Giovanni; Roventini, Andrea; Virgillito, Maria Enrica; "Industrial unemployment, supply-side policies and the perverse interaction of flexibility and austerity", p-967-996. In: . São Paulo: Blucher, 2018.
ISSN 23577592, DOI 10.5151/enei2018-54

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