Market Rigidities and Labour Market Flexibility: An International Comparison
AbstractThe 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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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.
Volume (Year): 99 (1997)
Issue (Month): 2 (June)
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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442
Other versions of this item:
- Salvanes, K-G, 1996. "Market Rigidities and Labour Market Flexibility : An International Comparison," Papers 23/96, Norwegian School of Economics and Business Administration-.
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
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