Employment policy: possibilities and limitations
DOI:
https://doi.org/10.7203/IREP.3.1.21250
Abstract
The objective of this article is to analyze the possibilities and limitations of employment policy. After some considerations on its content and scope, it first addresses the policies that affect the labor supply and, more specifically, those aimed at establishing controls or incentives to regulate the labor force. Subsequently, labor demand policies are discussed and, in particular, the effects of bonuses on hiring and the relevance of establishing norms that protect existing jobs. Finally, regarding policy affecting wage formation, the consequences of minimum wage and the circumstances framing collective bargaining are studied. Throughout the presentation, it will be argued that the effectiveness of employment policy is conditioned, among other factors, by economic logic and by the restrictions imposed by the institutional frameworks in which they are developed.
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