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dc.contributor.authorBelke, Ansgaren_US
dc.contributor.authorGöcke, Matthiasen_US
dc.contributor.authorHebler, Martinen_US
dc.date.accessioned2009-01-28T16:12:54Z-
dc.date.available2009-01-28T16:12:54Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/20274-
dc.description.abstractWith the extension of its competence for social policy legislation in the Maastricht and Amsterdam treaties, the EU has adopted a significantly new social dimension in the past ten years. According to the Copenhagen criteria, the CEEC candidate countries have to adopt the former via the acquis communautaire. This paper discusses the effect of an adoption of this EU social law on future labor market performance in the CEECs. For this purpose, we model and investigate the impact of institutional uncertainty (and of its elimination) on job creation and job destruction in the CEEC candidate countries. We conclude that structural change on CEEC labor markets tends to be fostered via reducing institutional uncertainty. However, these kinds of benefits of the adoption of the acquis have to be weighed against the danger that the adoption of inefficient EU social and labor policy regulations imposed by the acquis might also entail significant risks for employment in the CEECs similar to those which have materialized in the former EU. This rather pessimistic view can be substantiated based on a public choice analysis of why the old EU members will want to impose the Social Charter even though it will harm the new members. These risks consist of a significant increase in hiring and firing costs and of higher wage rates. Based on a simple option value analysis, we investigate and evaluate the trade-off between lower institutional uncertainty and higher employment costs induced by the adoption of the acquis.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesIZA Discussion paper series 1039en_US
dc.subject.jelP26en_US
dc.subject.jelJ23en_US
dc.subject.jelD81en_US
dc.subject.ddc330en_US
dc.subject.keywordEU enlargementen_US
dc.subject.keywordreal option approachen_US
dc.subject.keywordsocial unionen_US
dc.subject.keywordinstitutional uncertaintyen_US
dc.subject.stwEU-Sozialpolitiken_US
dc.subject.stwEU-Erweiterungen_US
dc.subject.stwArbeitsmarktflexibilisierungen_US
dc.subject.stwRisikoen_US
dc.subject.stwRealoptionen_US
dc.subject.stwBeschäftigungseffekten_US
dc.subject.stwTheorieen_US
dc.subject.stwOsteuropaen_US
dc.titleInstitutional Uncertainty and European Social Union : Impacts on Job Creation and Destruction in the CEECsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn380020467en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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