Cover of policy brief 22

Wage Rigidities and Old-Age Unemployment

Martin Kerndler (TU Wien), Michael Reiter (IHS Vienna, NYU Abu Dhabi, EconPol Europe)

Wage smoothing is beneficial for firms and workers, but wage rigidities can lead to bilaterally inefficient separations. By comparing the impact of four policy measures regarding their impact on welfare, output and government expenditures, Martin Kerndler (TU Wien) and Michael Reiter (IHS Vienna, NYU Abu Dhabi, EconPol Europe) have identified a reasonable policy mix to counter the negative employment effects of wage rigidities. 
 

Citation

Martin Kerndler, Michael Reiter: Wage Rigidities and Old-Age Unemployment, EconPol Policy Brief 22, March 2020