Aspects of the Swiss Labor Market
IMF Working Papers, January 1, 1996
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Bibliographic details
- Authors: Paula De Masi, S. G. B. Henry
- Published: January 1, 1996
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451841855.001
Overview
- Title: Aspects of the Swiss Labor Market
- Authors: Paula De Masi, S. G. B. Henry
- Date: January 1, 1996
- Series: Working Paper No. 1996/003
- DOI: https://doi.org/10.5089/9781451841855.001
Main findings
- The paper analyzes the behavior of the Swiss labor market, emphasizing both changes to labor supply and real wage inflexibility as determinants of recent unusually high levels of unemployment.
- Historical supply responses meant that measured unemployment rates were rarely high in the past.
- These supply responses likely made real wages less responsive to shocks.
- Econometric tests reported in the paper broadly confirm the above suggestions.
- The tests imply that the level of unemployment consistent with stable inflation has risen in Switzerland.
Econometric evidence
- Econometric tests are reported and described as broadly confirming the suggestions regarding:
- supply responses that historically suppressed measured unemployment rates; and
- reduced responsiveness of real wages to economic shocks.
Implications for unemployment, wages, and inflation
- Real wage inflexibility and supply-side labor responses have contributed to unusually high unemployment levels.
- The level of unemployment consistent with stable inflation has increased in Switzerland, according to the paper’s econometric results.