European Parliament Library

Dismal employment growth in EU countries, the role of corporate balance sheet repair and dual labor markets, Bas B. Bakker and Li Zeng

Label
Dismal employment growth in EU countries, the role of corporate balance sheet repair and dual labor markets, Bas B. Bakker and Li Zeng
Language
eng
Bibliography note
Includes bibliographical references
Illustrations
illustrations
Index
no index present
Literary Form
non fiction
Main title
Dismal employment growth in EU countries
Nature of contents
dictionariesbibliography
Responsibility statement
Bas B. Bakker and Li Zeng
Series statement
IMF working paper, 13/179
Sub title
the role of corporate balance sheet repair and dual labor markets
Summary
This paper argues that the large differences among EU countries in post-crisis employment performance are to a large extent driven by the need to adjust corporate balance sheets, which had greatly deteriorated during the boom years in some countries but not in others. To close the large gaps between saving and investment, firms reduced investment and cut costs to boost profits. With much of the cost adjustment falling on firms' wage bills, employment losses were largest in countries under the most intense pressures to improve corporate profitability and with limited wage flexibility due to lab
Table Of Contents
Cover; Contents; Executive Summary; I. Introduction; II. Literature Review; Figures; 1. Real GDP and Employment Growth, 2008-11; 2A. Real GDP and Employment: Where Okun's Law has Not Held Up; 2B. Real GDP and Employment: Where Okun's Law Has Held Up; III. Corporate Balance Sheet Repair and the Pre-Crisis Borrowing Binge; 3. Debt of Nonfinancial Corporate Sector, 2008 vs. 2003; 4. Nonfinancial Corporate Sector: Saving-Investment Balance, 2003 and 2008; 5. Nonfinancial Corporate Sector: Change in Saving-Investment Balance, 2003-086. Nonfinancial Corporate Sector: Change in Saving-Investment Balance, 2008-11IV. The Impact of Corporate Restructuring on Output and Employment; 7. Change in Profit of Nonfinancial Corporate Sector, 2008-11; 8. Profit Share Increase since 2008 versus Pre-Crisis Balance Sheet Deterioration; 9. Change in Profit Share of Nonfinancial Corporate Sector versus Real GDP Growth, 2008-11; 10. Change in Profit Share of Nonfinancial Corporate Sector versus Employment Growth, 2008-11; 11. Change in Profit Share of Nonfinancial Corporate Sector versus Labor Productivity Growth, 2008-1112. Real GDP and Labor Productivity GrowthV. The Role of Labor Market Duality; 13. Change in Profit Share of Nonfinancial Corporate Sector versus Employment Growth Not Explained by Real GDP Growth, 2008-11; 14. Share of Temporary Employment, 2007; 15. Real Wage Sensitivity and Labor Market Duality; VI. Econometric Analysis; 16. Decomposition of Employment Growth, 2008-11; VII. Policy Implications; 17. Ireland: The Resumption of Employment Growth; Tables; 1. Determinants of Employment Growth During 2008-11; 2. Check on Other Pre-Crisis Imbalance Measures3. Explanantion of Nonfinancial Corporate Profit Share Change During 2008-114. Employment Growth During 2008-11 and Pre-Crisis Balance Sheet and Profitability Deterioration; References; Appendix. Data for regression analysis