Economic impact of professional services reform in Belgium – A DSGE simulation

by Chantal Kegels, Dirk Verwerft
June, 2018

This working paper reports the results of a macroeconomic impact assessment of the reforms in three regulated professional services in Belgium, namely legal, accounting and architectural services. Beyond their direct contribution to the economy, these services are economically relevant because they are closely linked to the other industries not only as user of inputs but … Continued

Explaining the post-crisis Philips curve: Cumulated wage gap matters for inflation

by Liviu Voinea
June, 2018

This paper constructs a new model for understanding the relationship between wage and inflation. It introduces the concept of a cumulated wage gap – meaning the cumulated gap between the current wage and a maximum reference wage value in the past. The permanent income hypothesis is fundamentally flawed in times of crisis, because of the … Continued

Overeducation in Europe: trends, convergence, and drivers

by Seamus McGuinness, Adele Bergin, Adele Whelan
June, 2018

Overeducation describes the situation whereby workers are located in jobs for which they are deemed overqualified. This paper examines patterns in overeducation between countries using a specifically designed panel data set constructed from the quarterly Labour Force Surveys of 28 EU countries over a 12- to 15-year period. It is not the case that overeducation … Continued

The role of individuals, firms and the society in lifelong learning

by Antti Kauhanen
June, 2018

Labor market restructuring has sparked discussion on lifelong learning. One important question deals with the proper distribution of responsibility for the updating of skills. What is the responsibility of individuals, firms and the society? To analyze this question, it is useful to see lifelong learning as an investment. It is an investment because it causes … Continued

Multiregional Population Projection Model at the EU level

by Marie Vandresse
June, 2018

This paper explores the possibility of building a multiregional migration model at the EU level based on Eurostat statistics on migration by country of previous and next residence, by country of birth or by citizenship. These statistics are used to build a consistent origin-destination matrix for the EU Member States. In this case, ’consistent’ means … Continued

New report on transition risks for the Polish finance sector

by Maciej Bukowski, Aleksander Śniegocki, Zofia Wetmańska, Joanna Wis-Bielewicz
June, 2018

In the near future, more stringent climate policies will affect economic performance of coal and other fossil fuel assets. According to the new report by Warsaw-based independent think tank WiseEuropa Institute – “The climate finance domino. Transition risks for the Polish financial sector” – this issue is particularly significant for Poland. The country faces a … Continued