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Firing Restrictions, Government Growth, Immigration, and the NAIRU: Evidence from Fifteen OECD Countries

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  • Dimitris Hatzinikolaou
  • Pantelis Kammas

Abstract

Using a Phillips-type equation and annual aggregate data from 15 Organization for Economic Cooperation and Development (OECD) countries, we estimate the effects of the following policies on the ‘non‐accelerating inflation rate of unemployment’ (NAIRU): restrictions on firing, growth in government ‘productive’ expenditure, growth in social security benefits, and lax immigration policy. We consider Greece separately, but treat the other 14 countries as a fixed‐effects panel. Two effects seem to be robust to changes in the sample: restrictions on firing and growth in social security benefits raise the NAIRU.

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File URL: http://hdl.handle.net/10.1111/j.1467-9914.2010.00497.x
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Bibliographic Info

Article provided by CEIS in its journal LABOUR.

Volume (Year): 24 (2010)
Issue (Month): 4 (December)
Pages: 441-455

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Handle: RePEc:bla:labour:v:24:y:2010:i:4:p:441-455

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Cited by:
  1. Chletsos, Michael & Roupakias, Stelios, 2012. "The impact of immigration on the greek labor market," MPRA Paper 39872, University Library of Munich, Germany.
  2. Valerija Botric, 2012. "NAIRU estimates for Croatia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics, vol. 30(1), pages 163-180.

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