Reforming Dual Labor Markets In Advanced Economies

Author:Giovanni Ganelli
Pages:1-3
SUMMARY

Labor market duality has increased dramatically in many advanced countries in recent years. While duality has some positive aspects, microeconomic and cross-country studies suggest that an excessive reliance on “non-regular” employment has a negative impact on total factor productivity (TFP) and growth. This article summarizes recent research on this topic, and draws some policy implications for... (see full summary)

 
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IMF
Volume 14, Number 4 December 2013
www.imf.org/researchbulletin
B U L L E T I N
1
Rating Through-The-Cycle:
What Does the Concept Imply for
Rating Stability and Accuracy?
John Kiff, Michael Kisser, and Liliana Schumacher
Credit rating agencies face a
difficult tradeoff between deliv-
ering both accurate and stable
ratings. While ratings should
provide the most accurate
estimate of the correspond-
ing default risk of an underlying asset, users of ratings often prefer that they do
not change too frequently. Rating agencies therefore generally assign ratings on a
more stable “through-the-cycle” basis whereas banks’ internal valuations are often
based on a “point-in-time” perspective, reflecting the current value of a rated
entity’s or instrument’s underlying assets. This article summarizes recent research
that compares the two approaches and assesses their impact on rating stability
and accuracy.
Reforming Dual Labor Markets In
Advanced Economies
Giovanni Ganelli
Labor market duality has increased dramatically in many
advanced countries in recent years. While duality has some posi-
tive aspects, microeconomic and cross-country studies suggest
that an excessive reliance on “non-regular” employment has a
negative impact on total factor productivity (TFP) and growth.
This article summarizes recent research on this topic, and draws
some policy implications for reforms aimed at reducing duality and creating more
inclusive labor markets in advanced economies.
Labor market dualit y—a two tier job market—has increased dramatic ally in
many advanced economies in recent yea rs. is has resulted in a growing share of
“non-regular” workers, with a much lower level of employment protection, as well
as lower wages and career prospects c ompared to “regular” workers. e deni-
tion of non-regular employment changes from countr y to country, but one indi-
cator available for international compar isons, the share of temporary workers,
(continued on page 4)
In This Issue
1 Reforming Dual Labor
Markets In Advanced
Economies
1 Rating Through-The -Cycle:
What Does the Concept
Imply for Rating Stability
and Accuracy?
7 Q&A: Seven Questions
on Financial Crises:
Perspectives from the
Frontier of Research
10 IMF Working Papers
13 Recommended Readings
from the IMF Bookstore
14 Staff Discussion
Notes
14 IMF Economic Review
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(continued on page 2)
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