Title: From wage suppression to sovereign debt crisis in Western Europe: who pays for the costs of the crisis?

Authors: Ozlem Onaran

Addresses: Department of Economics and Statistics, Middlesex University, The Burroughs, London, NW4 4BT, UK

Abstract: This paper discusses the costs of the crisis with respect to public finance and labour market outcomes. The paper shows the effects of the crisis on public debt, and discusses the possible effects on the functional distribution of taxes and the composition of public spending between public goods and inputs. With regards to labour market outcomes, we discuss the trends in employment, unemployment, wages, wage share, and personal income distribution after the crisis.

Keywords: financial crises; public debt; unemployment; employment; wages; wage share; Western Europe; wage suppression; sovereign debts; crisis costs; labour markets; public finance; market outcomes; functional distribution; taxes; taxation; spending composition; public spending; public goods; inputs; personal incomes; income distribution; public policy; economic policies; alternative paradigms.

DOI: 10.1504/IJPP.2011.039575

International Journal of Public Policy, 2011 Vol.7 No.1/2/3, pp.51 - 69

Published online: 14 Jan 2015 *

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