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Author Galbraith, James K.
Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Full Employment ♦ Toward Convergence ♦ United State ♦ Labor Market Reform ♦ European Unemployment ♦ Enrique Garcilazo ♦ Pay Structure ♦ Theoretical Section ♦ Present Quantitative Target ♦ Egalitarian Growth ♦ Levy Economics Institute ♦ Preliminary Version ♦ European Principle ♦ Systematic Reduction ♦ Economic Convergence ♦ European Paradox ♦ Fiftieth Anniversary ♦ Inter-regional Pay Differential ♦ Present Form ♦ American Inequality Level ♦ Friedrich Ebert Stiftung ♦ American New Deal ♦ European Pay ♦ Employment Performance ♦ Pan-european Economic Policy ♦ Maastricht Treaty ♦ Europe Closer
Abstract Abstract: This paper presents a strategy of economic convergence for Europe. European principles and ideals require convergence, but the pan-European economic policy of “labor market reform ” imposes divergence, in the hope that greater inequality in European pay will bring Europe closer to the dynamism and employment performance of the United States. We resolve this European paradox by showing that in fact the (inter-regional) pay structure of the United States is substantially more egalitarian than Europe; convergence toward American inequality levels will therefore require the systematic reduction of inter-regional pay differentials across Europe. We present quantitative targets for a strategy of egalitarian growth and pay convergence across the regions of Europe through 2042, the fiftieth anniversary of the Maastricht treaty. A theoretical section explains why such a strategy, following the experience of the American New Deal, should work to reduce the scourge of European unemployment. This is a preliminary version of a paper under preparation for the Friedrich Ebert Stiftung. It will be published in Europe by the FES following comments and revisions, and is forthcoming in its present form from the Levy Economics Institute. I thank Enrique Garcilazo for his work on the calculations. 2
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Learning Resource Type Article
Publisher Date 2006-01-01