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Market Rigidities and Labour Market Flexibility: An International Comparison

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Author Info
Salvanes, Kjell G

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Abstract

The effects of product and labor market rigidities on labor market dynamics are analyzed using a panel of two-digit ISIC level data for seven OECD countries. As expected, employment protection was found to slacken labor market flows. Centralized wage bargaining also reduced the degree of job turnover, although a priori the effect of centralized wage bargaining on labor market flexibility is not clear. Industry subsidies have a positive impact on job reallocation by increasing job creation. The labor market dynamics are also compared in detail for two economies regarded as extremes in terms of regulations, the United States and Norway. Copyright 1997 by The editors of the Scandinavian Journal of Economics.

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Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 99 (1997)
Issue (Month): 2 (June)
Pages: 315-33
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Handle: RePEc:bla:scandj:v:99:y:1997:i:2:p:315-33

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  1. Lundberg, Lars & Andersson, Linda & Gustafsson, Ola, 1998. "Structural Change, Competition and Job Turnover in the Swedish Manufacturing Industry 1964-96," Working Paper Series 148, Trade Union Institute for Economic Research. [Downloadable!]
  2. Oivind A. Nilsen & Kjell G. Salvanes & Fabio Schiantarelli, 2003. "Employment Changes, the Structure of Adjustment Costs, and Plant Size," Boston College Working Papers in Economics 586, Boston College Department of Economics. [Downloadable!]
    Other versions:
  3. Böckerman, Petri, 2002. "Perception of job instability in Europe," MPRA Paper 4701, University Library of Munich, Germany. [Downloadable!]
  4. Ramón Gómez-Salvador & Julián Messina & Giovanna Vallanti, 2004. "Gross job flows and institutions in Europe," Working Paper Series 318, European Central Bank. [Downloadable!]
    Other versions:
  5. Erol Taymaz & Sule Ozler, 2004. "Labor Market Policies and EU Accession: Problems and Prospects for Turkey," ERC Working Papers 0405, ERC - Economic Research Center, Middle East Technical University, revised Mar 2004. [Downloadable!]
  6. Andersson, Linda & Gustafsson, Ola & Lundberg, Lars, 1999. "Structural Change, Competition And Job Turnover In The Swedish Manufacturing Industry 1964-96," UmeÃ¥ Economic Studies 486, Umeå University, Department of Economics. [Downloadable!]
  7. Nilsen, Øivind & Salvanes, Kjell G. & Schiantarelli, Fabio, 2000. "Employment Changes, the Structure of Adjustment Costs, and Firms' Size," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A1-4, International Conferences on Panel Data. [Downloadable!]
  8. Chung, Heejung, 2006. "Flexibility, but for whom? : A new approach to examining labour market flexibility across Europe using company level data," MPRA Paper 2397, University Library of Munich, Germany, revised Mar 2007. [Downloadable!]
  9. Camacho-Cabiscol, Josep-Maria & Baró Llinàs, Joan & Alemany Leira, Ramon, 2000. "Job Flows In Catalonia," ERSA conference papers ersa00p456, European Regional Science Association. [Downloadable!]
  10. Lesley O'Connell, 1999. "Sistemas de negociación colectiva en seis países latinoamericanos: grados de autonomía y descentralización (Argentina, Brasil, Chile, México, Perú y Venezuela)," RES Working Papers 4169, Inter-American Development Bank, Research Department. [Downloadable!]
  11. Jesper Bagger and Morten Henningsen, 2008. "Job Durations and the Job Search Model: A Two-Country, Multi-Sample Analysis," Discussion Papers 553, Research Department of Statistics Norway. [Downloadable!]
  12. Harald Dale-Olsen and Dag Rønningen, 2000. "The Importance of Definitions of Data and Observation Frequen-cies for Job and Worker Flows - Norwegian Experiences 1996-1997," Discussion Papers 278, Research Department of Statistics Norway. [Downloadable!]
  13. Lesley O'Connell, 1999. "Collective Bargaining Systems in Six Latin American Countries: Degrees of Autonomy and Decentralization (Argentina, Brazil, Chile, Mexico, Peru, and Uruguay)," RES Working Papers 4168, Inter-American Development Bank, Research Department. [Downloadable!]
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