Country labor markets
Articles in this subject area summarize the current state of specific labor markets. They cover the labor market issues common to all countries but also highlight important developments specific to each country context.
editorial team
Subject Editor
Barnard College, USA, and IZA, Germany
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- Migration and ethnicity
- Labor markets and institutions
- Transition and emerging economies
- Country labor markets
The Chinese labor market, 2000–2016
The world’s second largest economy has boomed, but a rapidly aging labor force presents substantial challenges
Junsen ZhangJia Wu, May 2018China experienced significant economic progress over the past few decades with an annual average GDP growth of approximately 10%. Population expansion has certainly been a contributing factor, but that is now changing as China rapidly ages. Rural migrants are set to play a key role in compensating for future labor shortages, but inequality is a major issue. Evidence shows that rural migrants have low-paying and undesirable jobs in urban labor markets, which points to inefficient labor allocation and discrimination that may continue to impede rural–urban migration.MoreLess -
The Danish labor market, 2000–2022 Updated
The Danish flexicurity model has proven its resilience to large shocks, with favorable overall labor market performance
Torben M. Andersen, April 2023Denmark is often highlighted as a “flexicurity” country with lax employment protection legislation, generous unemployment insurance, and active labor market policies. This model has coped with the Great Recession and the Covid-19 pandemic, avoiding large increases in long-term and structural unemployment. The recovery from Covid-19 alongside re-openings has been swift, so labor market effects were temporary. A string of recent reforms has boosted labor supply and employment; although fiscal sustainability is ensured, demographic changes challenge the labor market. Real wage growth has been positive and responded—with some lag—to unemployment.MoreLess -
The labor market in Australia, 2000–2016
Sustained economic growth led to reduced unemployment and real earnings growth, but prosperity has not been equally shared
Garry Barrett, July 2018Since 1991, the Australian economy has experienced sustained economic growth. Aided by the commodities boom and strong public finances, the Australian economy negotiated the global financial crisis without falling into recession. Over this period there were important structural changes, with increasing labor force participation among the elderly and the continuing convergence of employment and unemployment patterns for men and women. However, some recent negative trends include a rise in unemployment, especially long-term unemployment, a deteriorating youth labor market, and a stagnant gender earnings gap.MoreLess -
The labor market in Austria, 2000–2016
Fifteen years ago Austria was the “better Germany,” but it has failed to keep up over time
René Böheim, December 2017Austria is an interesting economy due to its strong industrial relations with institutionalized collective bargaining over wage negotiations and working conditions. Currently, Austria’s GDP per capita is high, but unemployment, although comparably low on an international scale, is not declining in the aftermath of the financial crisis. The labor market is also characterized by an increasing share of mostly low-skilled foreign workers. High marginal labor taxes discourage low-skilled workers from leaving social assistance.MoreLess -
The labor market in Belgium, 2000–2016
Beyond satisfactory average performances lies a strongly segmented labor market with long-term challenges
Might the Belgian labor market be included in the gallery of “Belgian surrealism”? At first sight, Belgium with its 11 million inhabitants has withstood the Great Recession and the euro area debt crisis relatively well, quickly getting back on track toward growth and employment, apparently without rising earnings inequality. But if one digs a little deeper, Belgium appears to be a strongly segmented labor market, first and foremost in an astounding north–south regional (linguistic) dimension. This extreme heterogeneity, along with several demographic challenges, should serve as a warning for the future.MoreLess -
The labor market in Brazil, 2001–2015
An ongoing crisis threatens Brazil’s recent increased earnings and its decreased inequality and gender and ethnic gaps
Sergio Pinheiro FirpoRenan Pieri, June 2018From 2001 to 2015, Brazil experienced a profound reduction in income inequality. The commodities boom and some institutional changes in the early 2000s kick-started the Brazilian labor market, increasing the quantity of formal jobs and earnings, especially for the poorest workers. Significant increases in average schooling and the real minimum wage helped reduce ethnic, gender, and regional earnings gaps, though all remain rather high. However, since 2014 a major fiscal crisis has negatively affected GDP and the labor market, seriously threatening these achievements.MoreLess