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The unemployment effects of labor regulation around the world

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  • Feldmann, Horst

Abstract

Using data on 73 economies for the years 2000 to 2003, this paper empirically analyzes the effects of labor regulation on unemployment around the globe. According to the regression results, stricter regulation generally appears to increase unemployment. Tight hiring and firing rules and military conscription most clearly seem to have adverse effects. More centralized collective bargaining seems to increase female unemployment. The size of most effects appears to be substantial, particularly among young people. However, we do not find statistically significant effects of minimum wages or unemployment benefits. Our results are robust to variations in specification. Journal of Comparative Economics 37 (1) (2009) 76-90.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 37 (2009)
Issue (Month): 1 (March)
Pages: 76-90

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Handle: RePEc:eee:jcecon:v:37:y:2009:i:1:p:76-90

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Web page: http://www.elsevier.com/locate/inca/622864

Related research

Keywords: Collective bargaining Hiring and firing regulation Labor regulation Military conscription Minimum wage Unemployment Unemployment benefits;

References

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Citations

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Cited by:
  1. Potrafke, Niklas, 2013. "Globalization and labor market institutions: International empirical evidence," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 829-842.
  2. Bernal-Verdugo, Lorenzo E. & Furceri, Davide & Guillaume, Dominique, 2013. "Banking crises, labor reforms, and unemployment," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1202-1219.
  3. Yasser Abdih & Leandro Medina, 2013. "Measuring the Informal Economy in the Caucasus and Central Asia," IMF Working Papers 13/137, International Monetary Fund.
  4. Meyer, Moritz & Vandenberg, Paul, 2013. "Globalization, Labor Market Regulation, and Firm Behavior," ADB Economics Working Paper Series 361, Asian Development Bank.
  5. Lorenzo E. Bernal-Verdugo & Davide Furceri & Dominique M. Guillaume, 2012. "Labor Market Flexibility and Unemployment," IMF Working Papers 12/64, International Monetary Fund.
  6. Horst Feldmann, 2013. "Exchange Rate Regimes and Unemployment," Open Economies Review, Springer, vol. 24(3), pages 537-553, July.
  7. Christian Bjørnskov, 2014. "Do Economic Reforms Alleviate Subjective Well-Being Losses of Economic Crises?," Journal of Happiness Studies, Springer, vol. 15(1), pages 163-182, February.
  8. Josef C Brada & Marcello Signorelli, 2012. "Comparing Labor Market Performance: Some Stylized Facts and Key Findings," Comparative Economic Studies, Palgrave Macmillan, vol. 54(2), pages 231-250, June.
  9. Horst Feldmann, 2012. "Product Market Regulation and Labor Market Performance around the World," LABOUR, CEIS, vol. 26(3), pages 369-391, 09.
  10. Anna Baranowska-Rataj & Iga Magda, 2013. "Decomposition of trends in youth unemployment – the role of job accessions and separations in countries with different employment protection regimes," Working Papers 53, Institute of Statistics and Demography, Warsaw School of Economics.
  11. Antonis Adam, 2012. "Military conscription as a means of stabilizing democratic regimes," Public Choice, Springer, vol. 150(3), pages 715-730, March.
  12. Betcherman, Gordon, 2014. "Labor market regulations : what do we know about their impacts in developing countries ?," Policy Research Working Paper Series 6819, The World Bank.
  13. Zuzanna Brzozowska, 2013. "Was falling fertility in the communist Poland driven by changes in women’s education?," Working Papers 54, Institute of Statistics and Demography, Warsaw School of Economics.
  14. Gallagher, Mary & Giles, John T. & Park, Albert & Wang, Meiyan, 2013. "China's 2008 Labor Contract Law: Implementation and Implications for China's Workers," IZA Discussion Papers 7555, Institute for the Study of Labor (IZA).
  15. Djankov, Simeon & Ramalho, Rita, 2008. "Employment Laws in Developing Countries," CEPR Discussion Papers 7097, C.E.P.R. Discussion Papers.
  16. Aleksynska, Mariya, 2014. "Deregulating labour markets : how robust is the analysis of recent IMF working papers?," ILO Working Papers 484966, International Labour Organization.
  17. Liina Malk, 2013. "Relaxation of employment protection and its effects on labour reallocation," Bank of Estonia Working Papers wp2013-4, Bank of Estonia, revised 04 Jun 2013.

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