Working Paper No. 520

Cumulative Effects of Labor Market Distortions

Published: January 19, 1999. Revised October 5, 2000.Pages: 23Keywords: Vertical Linkages; Multiple Equilibria; Labor UnionsJEL-codes: F12, O11, J50

Cumulative Effects of Labor Market Distortions Pehr-Johan Norbäck


This paper considers a small open economy whit an input-output industrial structure that creates vertical linkages multiple equilibria. An imperfect labor market is introduced by assuming unionized labor. It is shown that a deregulation of the labor market may trigger a large, discontinuous expansion of industrial output, as reduced wage-costs start a circular, cumulative process in which expansions of the up- and downstream industries promote each other. Centralization of collective bargaining may, however, also be conductive to industrialization.

Pehr-Johan Norbäck

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Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective

Pages-from-2019-Calmfors-Gassen---Integrating-Immigrants-into-the-Nordic-Labour-Markets.gif

Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

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