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The OECD Beveridge Curve: technological progress, globalisation and institutional factors

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  • Sergio Destefanis
  • Giuseppe Mastromatteo

Abstract

This paper tests the existence of a Beveridge Curve across the economies of nineteen OECD countries from 1980 to 2007, investigating the impact of technological progress and globalisation on the unemployment-vacancies trade-off. We find largely favourable evidence for the existence of a OECD Beveridge Curve. Lagged values of technological progress (R&D intensity) shift the Curve outwards, producing evidence in support of the creative destruction effect. Lagged values of a globalisation index also shift the Curve outwards, worsening the unemployment-vacancies trade-off. On the other hand, capital per worker shifts the Curve inwards both in the short and in the long run. Significant institutional variables include coordination bargaining, and, less consistently, unemployment benefits or employment protection. Including in the Curve structural indicators (such as technological progress and globalisation) as well as institutional variables is needed to obtain a satisfactory specification. Copyright Eurasia Business and Economics Society 2015

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  • Sergio Destefanis & Giuseppe Mastromatteo, 2015. "The OECD Beveridge Curve: technological progress, globalisation and institutional factors," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 151-172, June.
    • Handle: RePEc:spr:eurasi:v:5:y:2015:i:1:p:151-172
    DOI: 10.1007/s40821-015-0019-z
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    2. Sergio Destefanis & Matteo Fragetta & Nazzareno Ruggiero, 2023. "Active and passive labour-market policies: the outlook from the Beveridge curve," Applied Economics, Taylor & Francis Journals, vol. 55(55), pages 6538-6550, November.
    3. Silvia Vannutelli & Sergio Scicchitano & Marco Biagetti, 2022. "Routine-biased technological change and wage inequality: do workers’ perceptions matter?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 409-450, September.
    4. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "Youth Labour-Market Performance, Institutions and Vet Systems: A Cross-Country Analysis," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(1), pages 39-69, March.
    5. Narendar Rao & K. Reddy, 2015. "The impact of the global financial crisis on cross-border mergers and acquisitions: a continental and industry analysis," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 309-341, December.
    6. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "The role of the education systems and the labour market institutions in enhancing youth employment: a cross-country analysis," Discussion Papers 1_2017, CRISEI, University of Naples "Parthenope", Italy.

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