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Globalization is widely believed to have restricted the freedom of policy makers - many fear that the forces of a global economy prevent different political parties from making substantially distinctive policy choices. InPartisanship, Globalization, and Canadian Labour Market Policy, Rodney Haddow and Thomas Klassen explore this contentious issue by comparing labour market policy in Canada's most populous provinces, Ontario, Quebec, British Columbia, and Alberta, between 1990 and 2003. Using the most up-to-date theoretical approaches available, Haddow and Klassen examine industrial relations, workers' compensation, occupational health, employment standards, training, and social assistance, measuring the impact of partisanship and globalization on policy-making in these areas. They situate Canada in relation to recent international scholarship on the comparative political economy of developed democracies, and explore the role that institutions play in conditioning labour market policy. Partisanship, Globalization, and Canadian Labour Market Policywill not only be of interest to experts working in the field of labour market policy, but also to students and teachers of comparative political economy, partisanship, and governance in Canada.

We offer a unified analysis of the growth of low-skill service occupations between 1980 and 2005 and the concurrent polarization of US employment and wages. We hypothesize that polarization stems from the interaction between consumer preferences, which favor variety over specialization, and the falling cost of automating routine, codifiable job tasks. Applying a spatial equilibrium model, we corroborate four implications of this hypothesis. Local labor markets that specialized in routine tasL · differentially adopted information technology, reallocated low-skill labor into service occupations (employment polarization), experienced earnings growth at the tails of the distribution (wage polarization), and received inflows of skilled labor.

We analyze the effect of rising Chinese import competition between 1990 and 2007 on US local labor markets, exploiting cross-market variation in import exposure stemming from initial differences in industry specialization and instrumenting for US imports using changes in Chinese imports by other high-income countries. Rising imports cause higher unemployment, lower labor force participation, and reduced wages in local labor markets that house importcompeting manufacturing industries. In our main specification, import competition explains one-quarter of the contemporaneous aggregate decline in US manufacturing employment. Transfer benefits payments for unemployment, disability, retirement, and healthcare also rise sharply in more trade-exposed labor markets.

We study the evolution of trade liberalization's effects on Brazilian local labor markets. Regions facing larger tariff cuts experienced prolonged declines informal sector employment and earnings relative to other regions. The impact of tariff changes on regional earnings 20 years after liberalization was three times the effect after 10 years. These increasing effects on regional earnings are inconsistent with conventional spatial equilibrium models, which predict declining effects due to spatial arbitrage. We investigate potential mechanisms, finding empirical support for a mechanism involving imperfect interregional labor mobility and dynamics in labor demand, driven by slow capital adjustment and agglomeration economies. This mechanism gradually amplifies the effects of liberalization, explaining the slow adjustment path of regional earnings and quantitatively accounting for the magnitude of the long-run effects.

\"The experience of Central and Eastern Europe is unique. It is evidence of great success in demolishing the communist system and building a market economy. It is also evidence of major remaining challenges. This excellent book should be read not only by EU politicians and bureaucrats, but should serve as a manual for those who are concerned with the long-term development of their country, political pragmatists, researchers and others involved in the reform of social policy.\" Andris Berzins, former Prime Minister and Minister of Welfare of Latvia Labor Markets and Social Policy in Central and Eastern Europe summarises social policy reform during the transition and EU accession and analyses the social policy challenges which continue to face both old and new member states. Specifically, the book amplifies two sets of arguments. First, social policy under communism was in important respects well-suited to the old order and – precisely for that reason – was systematically badly-suited to a market economy. Strategic reform directions thus followed from the nature of the transition process and from constraints imposed by EU accession. Secondly, successful accession is not the end of the story: economic and social trends over the past 50 years are creating strains for social policy which all countries – old and new members – will have to face. This book will be of interest to readers interested in social policy, particularly those with an interest in the process of post-communist transition, in EU accession, and in future social policy challenges for the wider Europe. It should be of interest to academics in departments of economics, social policy and political science, and to policy makers, including government advisers and civil servants. This book is a sequel to Labor Markets and Social Policy in Central and Eastern Europe: The Transition and Beyond, also edited by Nicholas Barr (ISBN 0-19-520998-2. $US22).

Immigration controls are often presented by government as a means of ensuring 'British jobs for British workers' and protecting migrants from exploitation. However, in practice they can undermine labour protections. As well as a tap regulating the flow of labour, immigration controls function as a mould, helping to form types of labour with particular relations to employers and the labour market. In particular, the construction of institutionalised uncertainty, together with less formalised migratory processes, help produce 'precarious workers' over whom employers and labour users have particular mechanisms of control.

We show that the effects of taxes on labor supply are shaped by interactions between adjustment costs for workers and hours constraints set by firms. We develop a model in which firms post job offers characterized by an hours requirement and workers pay search costs to find jobs. We present evidence supporting three predictions of this model by analyzing bunching at kinks using Danish tax records. First, larger kinks generate larger taxable income elasticities. Second, kinks that apply to a larger group of workers generate larger elasticities. Third, the distribution of job offers is tailored to match workers' aggregate tax preferences in equilibrium. Our results suggest that macro elasticities may be substantially larger than the estimates obtained using standard microeconometric methods.

This paper explores the geographic overlap of trade and technology shocks across local labor markets in the United States. Regional exposure to technological change, as measured by specialization in routine task-intensive production and clerical occupations, is largely uncorrelated with regional exposure to trade competition from China. While the impacts of technology are dispersed throughout the United States, the impacts of trade tend to be more geographically concentrated, owing in part to the spatial agglomeration of labor-intensive manufacturing. Our findings highlight the feasibility of separately identifying the impacts of recent changes in trade and technology on US regional economies. [PUBLICATION ABSTRACT]

In this paper, we examine how business cycles affect labor market outcomes in the United States. We conduct a detailed analysis of how cycles affect outcomes differentially across persons of differing age, education, race, and gender, and we compare the cyclical sensitivity during the Great Recession to that in the early 1980s recession. We present raw tabulations and estimate a state panel data model that leverages variation across U.S. states in the timing and severity of business cycles. We find that the impacts of the Great Recession are not uniform across demographic groups and have been felt most strongly for men, black and Hispanic workers, youth, and low-education workers. These dramatic differences in the cyclicality across demographic groups are remarkably stable across three decades of time and throughout recessionary periods and expansionary periods. For the 2007 recession, these differences are largely explained by differences in exposure to cycles across industry-occupation employment. [PUBLICATION ABSTRACT]

We investigate the effect of studying abroad on international labour market mobility later in life for university graduates. We exploit the introduction and expansion of the European ERASMUS student exchange programme as an instrument for studying abroad. We find that studying abroad increases an individual's probability of working in a foreign country by about 15 percentage points. We investigate heterogeneity in returns according to parental education and the student's financial situation. Furthermore, we suggest mechanisms through which the effect of studying abroad may operate.