The six studies collected in this CESifo volume analyze the sometimes unpredictableeffects of public regulation on the labor market. Examining a wide range of policy interventions --from subsidized employment to an increased tax on capital -- and using a variety of methodologies toanalyze them, these contributions by leading scholars of the European labor market will advance thepolicy debate over regulation at a time of serious labor market problems in Europe and elsewhere.Thefirst three chapters of Labor Market Institutions and Public Regulation present empirical findings,comparing the effects of job training and subsidized employment on the Swedish labor market,analyzing the effect of extended unemployment benefits on unemployment duration for older Austrianworkers, and examining poor labor market performance in Spain even after policy reforms. Thefollowing chapters take a more theoretical approach, applying the analytical tools of theory topolicy issues. These three studies examine the general equilibrium repercussions of public supportfor both basic and higher education, develop an efficiency wage model to analyze mandated severancepay, and compare different kinds of redistribution to low-skill workers financed by an increased taxon capital.
Michael Keen is Head of the Tax Policy Division in the International Monetary Fund's Fiscal Affairs Department in Washington.
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