Countries with successful employment policy

Abstract

"In the USA, Great Britain, the Netherlands and Denmark the employment trend has been, at least in recent years, considerably more favourable than in Germany. The experiences of these countries show that there is a certain variety of ways to create more employment. In this respect there can be no patent remedies that can simply be copied. A look beyond borders, however, reveals common features for success in employment policy matters. Thus it was important to have a comprehensive macroeconomic approach in order to achieve success on the labour market. Experience shows that reforms must be thoroughly coordinated and agreed, for example with fiscal and social policy. Isolated partial reforms only result in partial success. In each case a favourable framework has been created for investment and consumption, for example through fiscal policy and monetary policy, as well as in taxation policy, for example by reducing direct taxes and placing greater emphasis on indirect taxes. Moderate wage increases and decentralised systems of wage determination have promoted an increase in employment in all of the countries under consideration. Even in the Dutch and Danish labour markets, which are strongly characterised by collective agreements, an increasing number of flexibilisation possibilities have been introduced into these agreements, for example regarding working hours. Furthermore low non-wage labour costs have reduced costs of employing the workforce." (Author's abstract, IAB-Doku) ((en))

Cite article

Werner, H. (1999): Countries with successful employment policy. What is behind their success? In: IAB Labour Market Research Topics No. 33, p. 1-22.