Productivity or Employment

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Traditionally, shocks to total factor productivity (TFP) are considered exogenous and the employment response depends on their effect on aggregate demand. We ra

Institutions, Informality, and Wage Flexibility

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Even though institutions are created to protect workers, they may interfere with labor market functioning, raise unemployment, and end up being circumvented by

The Economic Effects of Fiscal Consolidation with Debt Feedback

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The past several years of recession and slow recovery have raised much interest on the effect of fiscal stimulus on economic activity, even as high public debts

Canada's Potential Growth

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This study investigates the impact of the current financial crisis on Canada's potential GDP growth. Using a simple accounting framework to decompose trend GDP

Do Active Labor Market Policies Increase Employment?

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Using panel data for 15 industrial countries, active labor market policies (ALMPs) are shown to have raised employment rates in the business sector in the 1990s