Dt. Coe et Dj. Snower, POLICY COMPLEMENTARITIES - THE CASE FOR FUNDAMENTAL LABOR-MARKET REFORM, Staff papers - International Monetary Fund, 44(1), 1997, pp. 1-35
This paper argues that an important group of labor market policies are
complementary in the sense that the effect of each policy is greater
when implemented in conjunction with the other policies than in isolat
ion. This may explain why the diverse, piecemeal labor market reforms
in many European countries in recent years have had so little success
in reducing unemployment. What is required instead is deeper labor mar
ket reforms across a broader range of complementary policies and insti
tutions. To be politically feasible, these reforms must be combined wi
th measures to address distributional issues.