From the Great Recession to Labour Market Recovery. Issues, evidence and policy options
The Great Recession was one of the most traumatic global events of the first decade of the twenty-first century. This book showcases research undertaken by leading experts on the macroeconomic and labour market dimensions of the financial crisis of 2007-2009. It provides a global overview, interpreting the causes, consequences and policy responses to the Great Recession from the perspective of both developing and developed countries.
Edited by Iyanatul Islam and Sher Verick
The Great Recession was one of the most traumatic global events of the first decade of the twenty-first century. This book showcases research undertaken by leading experts on the macroeconomic and labour market dimensions of the financial crisis of 2007–2009. It provides a global overview, interpreting the causes, consequences and policy responses to the Great Recession from the perspective of both developing and developed countries.
The contributions trace the Great Recession’s complex and multiple causes, ranging from market, policy and regulatory failures to global imbalances. Since different countries – particularly the developing ones – have been affected variously, the authors delineate the diversity in the macroeconomic and labour market consequences. The impacts on specific population groups are also analysed, for instance youth, which has been especially hard hit in the OECD countries. Noting particularly the need for a combination of sound macroeconomic and labour market policies, the authors explore policy options for a post-crisis future. The volume argues that such a future would entail a renewed commitment to full employment and global collective action to advance the cause of ‘fair globalization’.
This book is essential reading for all interested in labour economics, employment studies, social policy and macroeconomics.
Co-published with Palgrave Macmillan.
Table of contents
About the authors
I. Islam and S. Verick
Interpreting the pre-crisis period: Alternative views
The global financial crisis of 2007–09
The chapters: A reader’s guide
2 The Great Recession of 2008–09: Causes, consequences and policy responses
I. Islam and S. Verick
Rates, risk, and regulation: factors behind the global financial crisis
The global economic and jobs crisis: diverse nature of its impact on national economies
Mitigating the effects of the crisis and securing a sustainable recovery: the effectiveness of policy responses
From recession to recovery
3 The global recession of 2008–09 and developing countries
The impact of the crisis on growth in developing countries
Responding to the growth slowdown
4 The employment challenge in developing countries during economic downturn and recovery
Economic downturns and labour market adjustment: An analytical framework
Labour market adjustment during donwturns and recoveries and the social consequences: Some case studies
Observations on the debate on labour market adjustment
The global financial crisis of 2008–09 and its impact on labour markets in developing countries
Policy responses at the national level and their possible implications for labour market recovery
5 The impact of the global financial crisis on labour markets in OECD countries: Why youth and other vulnerable groups have been hit hard
The overall impact of the crisis on OECD labour markets
Adjusting to a labour demand shock
How the global financial crisis has affected employment levels of different segments of the population
Why youth have been hard hit by the crisis
Explaining the impact of the global financial crisis on youth unemployment rates
6 The rise and fall of orthodox macroeconomic policy: Pre- and post-crises perspectives
A brief empirical account
Macroeconomics of stabilization: Static gains vs. dynamic efficiency
Resurgence of growth 2002–07: What lessons for macroeconomic policy?
Crises and macroeconomic policies
Towards an employment-focused macroeconomic policy
7 The perennial quest for fiscal and policy space in developing countries
Principles of good policy design
Dealing with the crisis and securing sustainable recovery: The issue of fiscal and policy space
Dealing with the crisis and securing sustainable recovery: The role of regional and global cooperation to augment fiscal and policy space at the national level
8 Labour market policies in times of crisis
S. Cazes, C. Heuer and S. Verick
The role of labour market policies over the business cycle
Labour market policy response to the global financial crisis of 2007–09
What has been working during the Great Recession of 2008–09?
9 Coping with crises: easing the burden of macroeconomic and structural adjustments through social dialogue
Social dialogue during the global financial crisis
10 The way forward
I. Islam and S. Verick
Summary of key findings
Delineating post-crisis future: From short-term management to a long-term strategic approach
List of Tables, Figures and Boxes