Macroeconomic policy, labour market institutions and employment outcomes

Bibliographic Data

ID2373516
AuthorsEileen Appelbaum (Center for Economic and Policy Research, corresponding author)
Year2011
Volume25
Issue4
Pages596-610
Publication date2011-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueWork Employment and Society (JOURNAL)
Journal identifiersISSN: 0950-0170 • E-ISSN: 1469-8722
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/0950017011419711
OpenAlexW2076621347
LanguageEN
Citations received11
References cited26

The increase in income inequality and household debt of middle- and lower-income households in the USA over several decades led to increasingly fragile financial institutions and set the stage for the most serious recession in the last 60 years. The proximate cause of the economic crisis was the collapse of the housing bubble that caused both the recession that began at the end of 2007 and the financial crisis that erupted in 2008. The drop in GDP in the USA, while steep, was not more severe than in most of the other OECD countries and the macroeconomic policy response was better. Yet the increase in the US unemployment rate was among the steepest. This article examines this failure of US labour market institutions to respond to these policy initiatives and the implications of the analysis for economic policy

Debt · Economic inequality · Economic policy · Economics · Financial crisis · Household debt · Inequality · Interest rate · Labour economics · Macroeconomics · Monetary economics · Recession · Unemployment · Economic Theory and Policy · Housing, Finance, and Neoliberalism · Labor market dynamics and wage inequality

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