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Labour Policies for Inclusive Growth

Project description

Developing opportunities to benefit all

Labour market policies have evolved to focus on anti-crisis measures and the need to maintain employment while limiting social disparities and exclusion. This requires the labour market to support inclusive growth, which basically means everyone has the opportunity to participate in growth and benefit from it. This is not easy as there are many factors and risks to consider. The EU-funded LPIGMANN project will review the current discourse and the impact of technology on immigration. With regard to labour market competition, it will evaluate how responsive recruitment is to wages. The project’s findings will assist policymakers via improved models and empirical methods to better analyse and develop policies that support inclusive growth.

Objective

Most advanced economies have struggled to deliver inclusive growth in recent decades. Many people are fearful about the impact on their lives of technological change, large-scale immigration, and a shifting balance of power in the labour market that seems to have benefitted employers at the expense of workers. There is a widening gap in economic fortunes between ex-industrial areas and dynamic cities with service-based economies. The stakes are high: we should not be surprised if some voters no longer support growth-enhancing policies if they do not anticipate benefitting from that growth.

While it is easy to identify the problems, diagnosing the causes and finding effective solutions has been more difficult. This proposal aims to improve our analytical tools for thinking about these problems and to develop appropriate policies to respond.

On the impact of technology, it will extend our understanding of the link between job polarization and inequality and analyse the appropriate skills policy. On immigration it will develop models of the impact of migration in which employers play a pro-active role as they do in many labour markets. This will be done by integrating models of migration with models of imperfectly competitive labour markets. The empirical content of these models and the implications for migration policies will be explored. On labour market competition the project will provide better estimates of how responsive recruitment is to wages offered by firms, and better measures of the gap between wages and productivity and how this varies across different types of labour markets.

The intention is that the proposal will help to develop practical policies to improve people’s lives. But it also aims to provide improved models and empirical methodologies to make a more lasting intellectual contribution, to equip us with the tools to analyse and develop policy not just for the problems we face today but the new ones we will undoubtedly face in the future.

Fields of science (EuroSciVoc)

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Keywords

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Programme(s)

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Topic(s)

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Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

ERC-ADG - Advanced Grant

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2018-ADG

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Host institution

LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 2 175 289,00
Address
Houghton Street 1
WC2A 2AE London
United Kingdom

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Region
London Inner London — West Westminster
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 2 175 289,00

Beneficiaries (1)

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