Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92755
Authors: 
Gaston, Noel
Rajaguru, Gulasekaran
Year of Publication: 
2004
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 615
Abstract: 
We study the political economy of labour market policies. First, it is shown that tax and redistributive considerations lead inside workers to prefer spending on active labour market programmes to passive spending, e.g., on unemployment benefits. We also show that greater active spending may be a feature of globalising economies. In the empirical work, panel data for OECD countries are used to examine the relationship between active and passive labour market spending, various measures of globalisation and controls relevant for analysing the political economy of labour market policies. Overall, we find that factors other than globalisation are more important determinants of labour market expenditures.
Subjects: 
active and passive labour market policies
inside workers
panel VAR estimates
JEL: 
J68
H53
C33
P16
Document Type: 
Working Paper

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