Re: Euro, Europe

["Rosser Jr, John Barkley" <rosserjb@xxxxxxx>]

     There is also a tendency to labor market
segmentation in the EU.  Thus, I know that in France, or at
least in the vicinity of Paris, something like 90% of the
concierges are Portuguese.  Actually they are now
properly called "gardiennes" these days, as "concierge" has
come to have a politically incorrect overtone. Dual labor
market folks.
Barkley Rosser
On Tue, 02 Jun 1998 08:20:19 -0400 "Ted Schmidt, Buffalo
State College" <schmidtp@xxxxxxxxxxxxxxxx> wrote:

>
>
> Bernard Girard wrote:
>
> > All discussions on Europe turn around the larger and richer countries, Germany, France.
> > But we should not forget poorer countries, like Portugal. The wages in Portugal (or
> > Greece or Spain)are today much lower than in Germany or France. The euro will give
> > workers of these countries an opportunity to enter in competition with workers from
> > richer countries, to compare wages, ask and quickly obtain raises. Which should create
> > inflation. Hence two questions :
> > - what will the ECB do?
> > - what will happen to those, retired, farmers, civil servants who cannot obtain so
> > easily raises? inequality might grow in these countries.
> >
>
>   Bernard:
> I'm not so sure your first assumption is correct. I would make the assumption that the
> richer
> countries now have to compete directly against low-wage workers and will find ways to
> reduce
> wages.  Also, I don't believe workers have the bargaining power in those poorer
> countries--i.e. higher UP
> rates.

--
Rosser Jr, John Barkley
rosserjb@xxxxxxx