Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174536
Authors: 
Dosi, Giovanni
Pereira, Marcelo de Carvalho
Roventini, Andrea
Virgillito, Maria Enrica
Year of Publication: 
2016
Series/Report no.: 
LEM Working Paper Series 2016/27
Abstract: 
This paper is meant to analyse the effects of labour market structural reforms by means of an agent-based model. Building on Dosi et al., (2016b) we introduce a policy regime change characterized by a set of structural reforms on the labour market, keeping constant the structure of the capital- and consumption-good markets. Confirming a recent IMF report (Jaumotte and Buitron, 2015), the model shows how labour market structural reforms reducing worker' bargaining power and compressing wages tend to increase (i) unemployment, (ii) functional income inequality, and (iii) personal income inequality. We further undertake a global sensitivity analysis on key variables and parameters which confirms the robustness of our findings.
Subjects: 
Labour Market Structural Reforms
Income Distribution
Inequality
Unemployment
Long-Run Growth
JEL: 
C63
E02
E12
E24
O11
Document Type: 
Working Paper

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