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IZA/NBS/CELSI Conference on European Labor Markets and the Euro Area during the Great Recession: Adjustment, Transmission, Interactions

Organizers: Klaus F. Zimmermann (IZA and University of Bonn), Martin Kahanec (Central European University and IZA), Martin Suster (National Bank of Slovakia (NBS))
Location:Hotel Saffron, Radlinského 27, Bratislava, Slovakia
Date:October 20, 2014 - October 21, 2014

Event Manager:
Dominik Spitza (IZA)

Press release [original version]:

In the light of the financial crisis, the National Bank of Slovakia, the Institute for the Study of Labor (IZA) and the Central European Labour Studies Institute (CELSI) jointly organized a conference on labor markets in the Eurozone titled "European Labor Markets and the Euro Area During the Great Recession: Adjustment, Transmission, Interactions."

The conference was opened by NBS Governor Jozef Makúch. "Labor markets have always been at the heart of central banks’ monetary policies. Modern research regarding the connection of labor markets and monetary policy are extremely important for us and we are pleased to welcome a number of important researchers in this field at this conference," he said in his welcoming remarks.

Two key contributions to the conference came from IZA Director Klaus F. Zimmermann and Jordi Galí (CREI and Pompeu Fabra University).

Zimmermann stressed the importance of scientific evidence and facts in shaping economic policy. He argued that labor market reforms are of a long-term nature. For example, the implementation of reforms in Germany spanned ten years. Furthermore, successful reforms in one country are not automatically transferable to other countries.

Jordi Galí spoke about the relationship of wage flexibility and exchange rate flexibility. He pointed out that certain levels of wage rigidity can decrease the flexibility of the economy in response to macroeconomic shocks. In countries with a fixed exchange rate, or which are members of a monetary union, the extent of wage rigidities is greater.

The conference hosted 27 foreign and domestic researchers from universities, central banks and international institutions. During the event, the book "Labor Migration, EU Enlargement, and the Great Recession" was presented, and the NBS Governor presented the best dissertation or thesis in economics award.




Martin Suster (National Bank of Slovakia (NBS)), Jordi Galí (CREI and Universitat Pompeu Fabra),
Klaus F. Zimmermann (IZA and University of Bonn), Martin Kahanec (Central European University and IZA)



Jozef Makúch (Governor of the National Bank of Slovakia), Klaus F. Zimmermann (IZA and University of Bonn), Jordi Galí (CREI and Universitat Pompeu Fabra)

Program

Monday, October 20:

08:30 - 09:00   Registration
 
09:00 - 09:30   Opening Remarks

Jozef Makúch (Governor of the National Bank of Slovakia)
 
09:30 - 10:30   Keynote Speech
 
    Klaus F. Zimmermann (IZA and University of Bonn)
"The Economics of Labor Market Reforms"
 
10:30 - 11:30   Session A: Wage Setting and Price-Wage Interactions
  Chair: Martin Suster (National Bank of Slovakia (NBS))
 
    Lead discussant: Peter Tóth (National Bank of Slovakia)
 
    Piotr Lewandowski (Institute for Structural Research (IBS)), Marek Antosiewicz (Warsaw School of Economics)
  "What if You Were German - A DSGE Approach to Great Recession on Labour Markets"
 
    Gaetano D'Adamo (Universidad de Valencia), Mariam Camarero (Universidad Jaume I), Cecilio Tamarit (Universidad de Valencia)
  "The Role of Institutions in Explaining Wage Determination in the Euro Area: A Panel Cointegration Approach"
 
11:30 - 12:00   Coffee Break
 
12:00 - 13:30   Session B: Labor Market Modeling, Macro-Interactions and Policies
  Chair: Alessio J. G. Brown (IZA)
 
    Lead discussant: Ronald Bachmann (RWI and IZA)
 
    Andrea Raffo (Federal Reserve Board of Governors), Gonzalo Llosa (University of California, Los Angeles), Lee Ohanian (University of California, Los Angeles), Richard Rogerson (Princeton University)
  "Firing Costs and Labor Market Fluctuations - A Cross-Country Analysis"
 
    Christian Merkl (University of Erlangen-Nuremberg and IZA), Almut Balleer (RWTH Aachen), Britta Gehrke (Friedrich-Alexander University Erlangen-Nuremberg), Wolfgang Lechthaler (Kiel Institute for the World Economy)
  "Does Short-Time Work Save Jobs? A Business Cycle Analysis"
 
    Yolanda Fatima Rebollo-Sanz (Universidad Pablo de Olavide), Núria Rodríguez-Planas (Queens College, CUNY and IZA)
  "Effects of Reducing the Unemployment Insurance Replacement Rate during the Recession? A Natural Experiment with Administrative Data"
 
13:30 - 14:30   Lunch
 
14:30 - 16:00   Session C: Implications for Monetary Policy
  Chair: Martin Kahanec (Central European University and IZA)
 
    Lead discussant: Christian Merkl (University of Erlangen-Nuremberg and IZA)
 
    Michal Rubaszek (National Bank of Poland), Anna Kosior (National Bank of Poland), Kamil Wierus (National Bank of Poland)
  "On the Importance of the Dual Labour Market for a Country within Monetary Union"
 
    Lien Laureys (Bank of England)
  "Optimal Monetary Policy in the Presence of Human Capital Depreciation during Unemployment"
 
16:00 - 16:30   Coffee Break
 
16:30 - 17:30   Book Launch: Labor Migration, EU Enlargement, and the Great Recession
 
    Klaus F. Zimmermann (IZA and University of Bonn)
"EU Enlargement and the Labor Markets: Mobility Agenda for a Vibrant Europe"
 
    Martin Kahanec (Central European University and IZA)
"The Free Movement of Workers in an Enlarged European Union: Adjustment in the EU and its Member States" [IZA DP 8456] [IZA DP 8249]
 
    Annabelle Krause-Pilatus (IZA), Ulf Rinne (IZA), Klaus F. Zimmermann (IZA and University of Bonn)
  "How Far away Is a Single European Labor Market?"
 
17:30 - 18:00   Special Session: IZA World of Labor
  Chair: Alessio J. G. Brown (IZA)
 
    Klaus F. Zimmermann (IZA and University of Bonn)
  "Circular Migration"
 
19:00       Dinner
 

Tuesday, October 21:

09:00 - 10:00   Session D: Labor Markets in Central Europe
  Chair: Jan Toth (National Bank of Slovakia (NBS))
 
    Lead discussant: Francesco Pastore (University of Naples II and IZA)
 
    Andreas Wörgötter (OECD, Paris), Zuzana Brixiova (African Development Bank and IZA)
  "The Impact of Internal Devaluation, Participation in Global Value Chains and Active Labour Market Policy in Small Euro Member Countries"
 
    Zuzana Siebertova (Council for Budget Responsibility (CBR)), Matúš Senaj (Council for Budget Responsibility (CBR)), Norbert Švarda (Council for Budget Responsibility (CBR)), Jana Valachyová (Council for Budget Responsibility (CBR))
  "To Work or Not to Work? Estimates of Labour Supply Elasticities"
 
10:00 - 11:00   Keynote Speech
 
    Jordi Galí (CREI and Universitat Pompeu Fabra), Tommaso Monacelli (Bocconi University)
  "Understanding the Gains from Wage Flexibility: The Exchange Rate Connection"
 
11:00 - 11:30   Coffee Break
 
11:30 - 13:00   Session E: Euro Area Labor Markets during the Current Crisis
  Chair: Pavel Gertler (National Bank of Slovakia (NBS))
 
    Lead discussant: Yolanda F. Rebollo Sanz (Universidad Pablo de Olavide)
 
    Benedicta Marzinotto (University of Udine)
  "Wage Behavior over the Cycle under EMU: The Role of Risk Aversion"
 
    Gregory Verdugo (Bank of France and IZA)
  "Real Wage Cyclicality in the Euro Zone before and during the Crisis: Evidence from Micro-Data"
 
    Ronald Bachmann (RWI and IZA), Peggy Bechara (RWI), Anica Kramer (RWI), Sylvi Rzepka (RWI)
  "Labour Market Dynamics and Worker Heterogeneity during the Great Recessions - Evidence from Europe"
 
13:00 - 14:00   Lunch
 
14:00 - 14:30   Governor of the NBS Award
Student Award for Best Dissertation/Thesis on an Economic Topic
 
14:30 - 16:00   Session F: Labor Mobility in Europe
  Chair: Klaus F. Zimmermann (IZA and University of Bonn)
 
    Lead discussant: Andreas Wörgötter (OECD, Paris)
 
    Robert Beyer (Goethe University Frankfurt), Frank Smets (Goethe University Frankfurt)
  "Reassessing Labour Market Adjustments and Migration in Europe and the US: How Different?"
 
    Patrick A. Puhani (Leibniz University of Hannover and IZA), Julia Jauer (OECD, Paris), Thomas Liebig (OECD, Paris), John P. Martin (University College Dublin and IZA)
  "Migration as an Adjustment Mechanism in the Crisis? A Comparison of Europe and the United States"
 
    Cristina Fernandez (Bank of Spain), Jose Maria Casado (Bank of Spain), Juan F. Jimeno (Bank of Spain and IZA)
  "Workers Flows in the European Union during the Great Recession"
 
16:00 - 16:15   Closing Remarks
 
16:15 - 16:45   Coffee
 

Participants

Marek K. Antosiewicz (Institute for Structural Research (IBS))
Jan Babecký (Czech National Bank)
Ronald Bachmann (RWI and IZA)
Igor Barát (Poštová banka)
Michal Benčík (National Bank of Slovakia (NBS))
Robert C. M. Beyer (Goethe University Frankfurt)
David G. Blanchflower (Dartmouth College and IZA)
Zuzana Brixiova (AfDB and IZA)
Alessio J. G. Brown (IZA)
Jose Maria Casado (Bank of Spain)
Marianna Cervena (Slovenska Sporitelna)
Gaetano D'Adamo (University of Valencia)
Ján Dinga (INESS)
Martin Feješ (National Bank of Slovakia (NBS))
Cristina Fernandez (Bank of Spain)
Jan Fidrmuc (Brunel University)
Jarko Fidrmuc (Zeppelin University Friedrichshafen)
Martin Filko (IFP, MF SR)
Jordi Galí (CREI and Universitat Pompeu Fabra)
Pavel Gertler (National Bank of Slovakia (NBS))
Andrej Hamara (Infostat)
Stefania C. Iordache (National Bank of Romania)
Valerie Jarvis (European Central Bank)
Judita Jurašeková Kucserová (National Bank of Slovakia (NBS))
Jana Juriová (Infostat)
Martin Kahanec (Central European University and IZA)
Alexander Karšay (National Bank of Slovakia (NBS))
Jörg Kleinert (University of Graz)
Annabelle Krause (IZA)
Eva Kreibik (National Bank of Slovakia (NBS))
Martin Lábaj (Ekonomická univerzita v Bratislave)
Tibor Lalinský (National Bank of Slovakia (NBS))
Lien Laureys (Bank of England)
Piotr Lewandowski (Institute for Structural Research (IBS))
Mikulas Luptacik (Economic University in Bratislava and Vienna University of Economics and Business)
Jozef Makuch (National Bank of Slovakia (NBS))
Anton Marcinčin (Ministry of Finance SR)
Benedicta Marzinotto (University of Udine)
Libor Melioris (IFP, MF SR)
Jaanika Meriküll (Bank of Estonia, and University of Tartu)
Christian Merkl (University of Erlangen-Nuremberg and IZA)
Katarína Muchová (Slovenska Sporitelna)
Zuzana Múčka (Council for Budget Responsibility (CBR))
Viktor Novysedlák (Council for Budget Responsibility (CBR))
Ludovit Odor (Council for Budget Responsibility (CBR))
Nataliia Ostapenko (CELSI)
Viliam Páleník (Slovak Academy of Sciences)
Francesco Pastore (University of Naples II and IZA)
Andrej Piovarči (City University of Seattle)
Patrick A. Puhani (Leibniz University of Hannover and IZA)
Marek Radvansky (Institute of Economic Research, Slovak Academy of Sciences)
Andrea Raffo (Federal Reserve Board of Governors)
Yolanda F. Rebollo-Sanz (Universidad Pablo de Olavide)
Michal Rubaszek (National Bank of Poland)
Matúš Senaj (Council for Budget Responsibility (CBR))
Peter Ševčovic (SZRB)
Zuzana Siebertová (Council for Budget Responsibility (CBR))
Zuzana Smehylova (Comenius University, Faculty of Management)
Lucia Šrámková (IFP, MF SR)
Miroslav Štefánik (Institute of Economic Research, Slovak Academy of Sciences)
Martin Šuster (National Bank of Slovakia (NBS))
Peter Szovics (Institute of Banking Education (NBS))
Peter Tóth (National Bank of Slovakia (NBS))
Ján Tóth (National Bank of Slovakia (NBS))
Tomas Tozser (National Bank of Slovakia (NBS))
Marian Vavra (National Bank of Slovakia (NBS))
Gregory Verdugo (Bank of France and IZA)
Andreas Wörgötter (OECD, Paris)
Andyarea Zacharova (VSM Trencin/City Univesity)
Tibor Zavadil (National Bank of Slovakia (NBS))
Klaus F. Zimmermann (IZA and University of Bonn)
Branislav Žúdel (IFP, MF SR)










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