Many countries of the world experienced an unusually deep and long recession after 2007. Over the same time frame, several facets of fiscal policy were changed, especially policies related to taxation and safety net programs. The purpose of this paper is to compare changes in fiscal policy parameters as they affected the incentives of middle-class Americans and British to be employed. The U.K. had a "stimulus programme" followed by an "austerity programme." The U.S. federal government also passed what it called a "stimulus package," followed by a major health reform.
***The evolution of employment has also been different in the two countries. Figure 1 displays an index of each country’s employment rates for prime-aged people. Employment fell sharply in both countries during the crisis, although less so in the U.K. The U.K. employment recovery began earlier, and by the end of 2014 the U.K. employment rate had exceeded pre-crisis levels. ***
Source: supply and demand (in that order) blog
Saturday, December 12, 2015
Post Recession UK Employment Rates Higher After British Austerity Than US Employment Rates After US Healthcare Reform
Posted By Milton Recht
From supply and demand (in that order), "Fiscal Policies and the Prices of Labor: A Comparison of the U.S. and the U.K." by Casey B Mulligan:
Posted 12/12/2015 01:00:00 AM