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Labour Market Institutions and Employment Thresholds. An International Comparison

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  • Gebhard Flaig
  • Horst Rottmann

Abstract

This paper deals with the effects to labour market institutions on labour market performance. We analyse the employment threshold (the minimum growth rate necessary to keep employment constant) which is an indicator for the labour intensity of production. We show for 17 OECD countries for the period 1971 to 2002 that the strictness of employment protection, the extent of wage bargaining co-ordination and the tax wedge reduce the labour intensity of production and raise the employment threshold.

Suggested Citation

  • Gebhard Flaig & Horst Rottmann, 2005. "Labour Market Institutions and Employment Thresholds. An International Comparison," ifo Working Paper Series No.15, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_no.15
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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