Institutional Reforms and Dualism in European Labor Markets
AbstractMost of the recent literature on the effects of labor market institutions on wages and employment draws on reforms used as natural experiments. This is a significant improvement with respect to the earlier literature which was based solely on cross-country variation in (highly imperfect) measures of these institutions. But this new literature lacks guidance from a body of theory acknowledging the fact that regulatory changes often create longlasting asymmetries, two-tier regimes, between a reformed and an unreformed segment of the labor market. This chapter provides new evidence on reforms in Europe, a continent with well established institutions and a very intense reform activity in the last 25 years. In light of this evidence, it extends a general equilibrium model of the labor market allowing for two-tier reforms of employment protection, unemployment benefits and employment conditional incentives. Next, it provides evidence on the scale and macroeconomic effects of the dualism induced by these reforms. Finally, it critically surveys the empirical literature drawing on institutional reforms in Europe.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
This chapter was published in:
This item is provided by Elsevier in its series Handbook of Labor Economics with number 5-13.
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description
Reforms; Two-tier reforms; Dualism;
Find related papers by JEL classification:
- J0 - Labor and Demographic Economics - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Rothe, Thomas & Giannelli, Gianna C. & Jaenichen, Ursula, 2013. "Doing well in reforming the labour market? Recent trends in job stability and wages in Germany," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79932, Verein für Socialpolitik / German Economic Association.
- Tealdi, Cristina, 2011. "Typical and atypical employment contracts: the case of Italy," MPRA Paper 39456, University Library of Munich, Germany.
- Eichhorst, Werner & Hinte, Holger & Rinne, Ulf, 2013. "Jugendarbeitslosigkeit in Europa: Status Quo und (keine?) Perspektiven," IZA Standpunkte 57, Institute for the Study of Labor (IZA).
- International Labour Office, 2012. "Global employment trends for youth : 2012," Global Employment Trends Reports 480201, International Labour Office, Economic and Labour Market Analysis Department.
- Eichhorst, Werner & Hinte, Holger & Rinne, Ulf, 2013. "Youth Unemployment in Europe: What to Do about It?," IZA Policy Papers 65, Institute for the Study of Labor (IZA).
- Charlot, Olivier & Malherbet, Franck, 2013. "Education and employment protection," Labour Economics, Elsevier, vol. 20(C), pages 3-23.
- Dräger, Vanessa & Marx, Paul, 2012. "Do Firms Demand Temporary Workers When They Face Workload Fluctuation? Cross-Country Firm-Level Evidence on the Conditioning Effect of Employment Protection," IZA Discussion Papers 6894, Institute for the Study of Labor (IZA).
- Giannelli, Gianna Claudia & Jaenichen, Ursula & Rothe, Thomas, 2013. "Doing Well in Reforming the Labour Market? Recent Trends in Job Stability and Wages in Germany," IZA Discussion Papers 7580, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.