Social Protection vs. Economic Flexibility: Is There a Tradeoff? (National Bureau of Economic Research--Comparative Labor Markets Series)

As the Clinton administration considers major overhauls in health insurance, welfare, and labor market regulation, it is important for economists and policymakers to understand the impact of social and welfare programs on employment rates. This volume explores how programs such as social security, income transfers, and child care in Western Europe, the United States, and Japan have affected labor market flexibilityOCothe ability of workers to adjust to fast-growing segments of the economy. Does tying health insurance to employment limit job mobility? Do housing policies inhibit workers from moving to new jobs in different areas? What are the effects of daycare and maternity leave policies on working mothers? The authors explore these and many other questions in an effort to understand why European unemployment rates are so high compared with the U.S. rate. Through an examination of diverse data sets across different countries, the authors find that social protection programs do not strongly affect labor market flexibility. A valuable comparison of labor markets and welfare programs, this book demonstrates how social protection policies have affected employment rates around the globe." Do Social Protection Programs Limit The Ability Of The Labor Market To Adjust To Fast-growing Segments Of The Economy, And Thus Inevitably Lead To A Decrease In Economic Growth? This Volume Compares How Such Programs As Social Security, Income Transfers, And Job Protection Laws In Western Europe, The United States, And Japan Have Affected Labor Market Flexibility. Does Tying Health Insurance To Employment Limit Job Mobility? Do Certain Housing Policies Inhibit Workers From Moving To New Jobs In Different Areas? What Are The Effects Of Daycare And Maternity Leave Policies On Working Mothers? The Authors Explore These And Many Other Questions In An Effort To Understand Why European Unemployment Rates Are So High Compared With The U.s. Rate. By Examining Diverse Data Sets Across Different Countries, The Authors Find That While Social Protection Programs Do Change Economic Behavior, There Is Little Evidence That They Create Inflexibility With Regard To Economic Adjustment. To Achieve Useful Comparisons Among Diverse Nations, The Authors Employ Difference-in-difference Estimators, Through Which Economic Changes In A Country That Has Undergone Policy Changes Can Be Compared To Economic Changes In A Country In Which Policy Has Remained Constant. An In-depth Look At The Impact Of Various Welfare Programs On Labor Market Change, This Book Demonstrates How Social Protection Policies Have Affected Employment Around The Globe. Introduction / Rebecca M. Blank -- Evaluating The Connection Between Social Protection And Economic Flexibility / Rebecca M. Blank And Richard B. Freeman -- Trends In Social Protection Prgrams And Expenditures In The 1980s / Peter Scherer -- Does Employment Protection Inhibit Labor Market Flexibility? Lessons From Germany, France, And Beligium / Katharine G. Abraham And Susan N. Houseman -- Patterns In Regional Labor Market Adjustment : The United States Versus Japan / Edward B. Montgomery -- Housing Market Regulations And Housing Market Performance In The United States, Germany, And Japan / Axel Borsch-supan -- Health Insurance Provision And Labor Market Efficiency In The United States And Germany / Douglas Holtz-eakin -- Social Security And Older Workers' Labor Market Responsiveness : The United States, Japan, And Sweden / Marcus E. Rebick -- Public Sector Growth And Labor Market Flexibility : The United States Versus The United Kingdom / Rebecca M. Blank -- (cont'd) Does Public Health Insurance Reduce Labor Market Flexibility Or Encourage The Underground Economy? Evidence From Spain And The United States / Sara De La Rica And Thomas Lemieux -- Social Welfare Programs For Women And Children : The United States Versus France / Maria J. Hanratty -- Three Regimes Of Child Care : The United States, The Netherlands, And Sweden / Siv Gustafsson And Frank P. Stafford. Edited By Rebecca M. Blank. These Papers Were First Presented At A Conference Held At The Centre For Economic Performance (cep) At The London School Of Economics--p. Ix. Includes Bibliographical References And Indexes. From the mid-1970s through the early 1980s, most western industrialized countries suffered from slow economic growth and high or rising unemployment.