TY  - JOUR
AU  - Blank,Rebecca M.
AU  - Freeman,Richard B.
TI  - Evaluating the Connection Between Social Protection and Economic Flexib ility
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4338
PY  - 1993
Y2  - April 1993
UR  - http://www.nber.org/papers/w4338
L1  - http://www.nber.org/papers/w4338.pdf
N1  - Author contact info:
Rebecca M. Blank
Under Secretary for Economic Affairs
Department of Commerce
Economics and Statistics Administration
Herbert C. Hoover Building, Room 4848
1401 Constitution Avenue, NW
Washington, DC  20230
Tel: 202-482-3727
Fax: 202-482-0432
E-Mail: rblank@doc.gov

Richard B. Freeman
NBER
1050 Massachusetts Avenue
Cambridge, MA  02138
Tel: 617/868-3900
Fax: 617/868-2742
E-Mail: freeman@nber.org
M1  - published as Rebecca M. Blank, Richard B. Freeman. "Evaluating the Connection between Social Protection and Economic Flexibility," in Rebecca M. Blank, "Social Protection versus Economic Flexibility: Is There a Trade-Off?" University of Chicago Press (1994)

AB  - Over the last 10 years, a variety of analysts have blamed high unemployment and stagnant economic growth in Europe on inflexible labor markets and pointed to the US as a more flexible economy, due to its less regulated labor markets and less generous social protection programs. This paper reviews that debate, critiques the arguments about the relationship between social protection programs and labor market adjustment, and reviews the research literature on this topic. In general, we conclude that much less is known about the aggregate effects of social protection programs on the economy than is generally claimed. Within the very limited existing research, there is little evidence of a significant trade-off between social programs and labor market adjustment, although there is also not much evidence to support those who claim that social protection promotes economic growth. The paper ends by suggesting future research directions.
ER  -