John T. Addison Bücher

In the new global economy, more countries have opened up to international competition and rapid capital flows. However, in the triad the process of globalization is rather asymmetric. With a rising role of multinational companies there are favorable prospects for higher global growth and economic catching-up, respectively. Theoretical analysis suggests key ingredients of sustained growth, but there is also a new concept of a long-term equilibrium income gap in which convergence is rather unlikely. The analysis also picks up European and US labor market issues in the context of economic globalization and raises the question of which EU policies in the field of labor market reform and of innovation policies are adequate.

Facing the globalization of economic relations and the challenge of NICs and eastern Europe, employment in most EU countries has stagnated. The focus here is upon labor market rules, unemployment dynamics, structural change and aspects of the social security system. Theoretical and empirical aspects as well as policy issues are discussed. Also addressed are matters related to monetary union that could compound labor market problems. Options for reforming labor markets and social security systems are considered throughout.

High unemployment rates in the period of an internationalization of economies and an intensified technological competition are the main problems that exist in most EU countries. Taking stock of unemployment patterns, technological trends and employment opportunities in the EU and the US is crucial for the reform debate in Europe. In continental Europe, major problems are an insufficient creation of new firms in innovative technology fields, inadequate labor market developments and inconsistent R&D policies. Founded on new data evaluations, the book presents an innovative analysis of these topics and shows opportunities for reforms.