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Institutional barriers in labor markets: Examples, impacts, and policies

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  • Cohen, S.I.
  • Rettab, B.

Abstract

This paper examines the institutional biases that impede the competitive functioning of labor markets. Two contexts are considered. The first relates to Moroccan labor migrants in The Netherlands, where institutional bias distorts the competitive functioning of the labor market by downgrading the educational returns to migrant workers and acting as a disincentive for further investment in human capital. The second relates to labor markets in Indonesia and Pakistan. Institutional bias in these two countries leads to an exaggeration of labor returns to certified education, and to over-investment in university education. We argue that such biases are fed by misinformed beliefs and group interests, and stand in the way of achieving higher growth and equity.

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Bibliographic Info

Article provided by Elsevier in its journal Socio-Economic Planning Sciences.

Volume (Year): 44 (2010)
Issue (Month): 4 (December)
Pages: 193-198

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Handle: RePEc:eee:soceps:v:44:y:2010:i:4:p:193-198

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Web page: http://www.elsevier.com/locate/seps

Related research

Keywords: Labor market Educational returns Institutions;

References

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  1. North, Douglass C., 1993. "Economic Performance through Time," Nobel Prize in Economics documents 1993-2, Nobel Prize Committee.
  2. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  3. James H. Anderson & Cheryl W. Gray, 2006. "Anticorruption in Transition 3 : Who is Succeeding... and Why?," World Bank Publications, The World Bank, number 7089, October.
  4. A. Chong & C. Calderón, 2000. "Causality and Feedback Between Institutional Measures and Economic Growth," Economics and Politics, Wiley Blackwell, vol. 12(1), pages 69-81, 03.
  5. Dennis Mueller, 2006. "Corporate Governance and Economic Performance," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(5), pages 623-643.
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