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The effects of the labor reforms are impossible to disentangle from the results of sound corporate strategy.
In Table 3, we present the steady-sate effects of the labor market reforms discussed in the previous subsection on selected home-country variables, while Table 4 shows the long-run spillovers of these reforms to the rest of EMU.
The reason for this is that, in what follows, we are interested in the isolated effects of the labor market reforms discussed below, and we want to avoid introducing additional distortions stemming from the fiscal side.
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Induced effects on the labor supply of other age groups cannot be excluded.
On the extensive margin, the direction of the effect on the labor supply is less uncertain because there is no income effect involved.
To avoid this, and to focus only on the pure effect of the labor market reform, we chose lump-sum taxes as the instrument.
Care-giving by grandparents could have an induced effect of the labor supply of their children (on this possibility see also Gielen 2009).
The effect of the labor transfer is an extraordinary increase of GDP values beyond what could be explained by the augmented use of labor, capital and other physical factors of production.
Republicans in the state play down the effect of the labor-led referendum and say Democrats were not the only ones taking names and building an organization last year.
"We're seeing the continued effects of the weak labor market and the long-term trends involving technology and globalization," said Lawrence Katz, an economics professor at Harvard, "Our self-inflicted wounds from austerity are also exacerbating things".
In the model, the effects of the material, labor, tool and equipment were discussed, and the corresponding formulas were provided.
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