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Labor Market Institutions and Labor Productivity Growth

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  • Fatih Macit

    ()
    (Suleyman Sah University, Department of Economics, Istanbul, Turkey)

Abstract

In this paper we investigate how the labor productivity growth is affected from various institutions of the labor market using the empirical evidence from a panel data of OECD countries. We find that benefit replacement rate, benefit duration index, and the tax wedge appear to be significant labor market institutions affecting the labor productivity growth. A higher benefit replacement rate, a longer duration of unemployment benefits, and a higher tax wedge are expected to generate a lower labor productivity growth.

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Bibliographic Info

Article provided by Weissberg Publishing in its journal Economic Research Guardian.

Volume (Year): 2 (2012)
Issue (Month): 1 (May)
Pages: 121-128

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Handle: RePEc:wei:journl:v:2:y:2012:i:1:p:121-128

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Keywords: Labor Market Institutions; Labor Productivity Growth;

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  1. Marcelo Veracierto, 2004. "Firing Costs and Business Cycle Fluctuations," 2004 Meeting Papers 590, Society for Economic Dynamics.
  2. Fabio Rumler & Johann Scharler, 2011. "Labor Market Institutions And Macroeconomic Volatility In A Panel Of Oecd Countries," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(3), pages 396-413, 07.
  3. Christoffel, Kai & Linzert, Tobias, 2005. "The Role of Real Wage Rigidity and Labor Market Frictions for Unemployment and Inflation Dynamics," IZA Discussion Papers 1896, Institute for the Study of Labor (IZA).
  4. Kamila Fialová & Ondrej Schneider, 2008. "Labour Market Institutions and their Effect on Labour Market Performance in the New EU Member Countries," CESifo Working Paper Series 2421, CESifo Group Munich.
  5. Thomas Lubik & Michael Krause, 2003. "The (Ir)relevance of Real Wage Rigidity in the New Keynesian Model with Search Frictions," Economics Working Paper Archive 504, The Johns Hopkins University,Department of Economics.
  6. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November.
  7. Fatih Macit, 2010. "Labor Market Institutions and Wage and Inflation Dynamics," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 40(3), pages 393-410, December.
  8. Campolmi, Alessia & Faia, Ester, 2011. "Labor market institutions and inflation volatility in the euro area," Journal of Economic Dynamics and Control, Elsevier, vol. 35(5), pages 793-812, May.
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