The Nordic expericence revisited: labour market booms and slumps since the 1990s in Finland and Sweden
PurposeThis paper aims to provide an account of the unemployment performance of two Nordic countries during their recent labour market booms and slumps.Design/methodology/approachBased on the empirical models of Karanassou et al., we conduct dynamic simulation exercises and explore the determinants of unemployment.FindingsThe analysis yields two main findings. First, the capital stock was the most important determinant of the unemployment trajectory in both countries. This result appears in all periods considered: in the slump of the early 1990s and the boom of the late 1990s, as well as in the stabilisation period of the early 2000s. Second, the role of the foreign sector on the unemployme…
El model de Solow: anàlisi teòrica, interpretació econòmica i contrast de la hipòtesi de convergència
Les assignatures vinculades a l’estudi de la macroeconomia solen resultar especialment àrides per als alumnes a causa de l’elevat aparell analític necessari per al desenvolupament del programa. Per això, en aquest article proposem una pràctica en la que: (i) es contrasta empíricament la hipòtesi de convergència; i (ii) es discuteix, utilitzant el model de Solow i evidència empírica associada, una explicació de la no convergència d’alguns països. La finalitat última d’aquesta pràctica és facilitar l’assimilació del model de Solow a partir d’un procés d’autoaprenentatge que permet a l’estudiant desenvolupar competències transversals tals com el coneixement de bases de dades, la utilització de…
The tax system incidence on unemployment: A country-specific analysis for the OECD economies
Abstract In this paper we evaluate the incidence of the tax structure on the labor market. To do so we go beyond the traditional examination of the “level” effect of the fiscal wedge and consider a “composition” effect defined as a payroll tax bias (PTB): the proportion of payroll taxes paid by employees with respect to the one paid by firms. We develop a right-to-manage model encompassing different wage bargaining systems and the incidence of different types of taxes. Controlling for demand-side and supply-side determinants of unemployment, we show that the PTB plays a significant role in explaining unemployment in the continental European countries, but not in the Nordic nor in the Anglo-…