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Are Protective Labor Market Institutions Really at the Root of Unemployment? A Critical Perspective on the Statistical Evidence

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Author Info

  • David R. Howell
  • Dean Baker
  • Andrew Glyn
  • John Schmitt

Abstract

This report debunks the myth that labor market protections, such as unions and unemployment benefits, are responsible for high European unemployment rates.

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File URL: http://www.cepr.net/documents/2006_07_unemployment_institutions.pdf
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Bibliographic Info

Paper provided by Center for Economic and Policy Research (CEPR) in its series CEPR Reports and Issue Briefs with number 2006-14.

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Date of creation: Jul 2006
Date of revision:
Handle: RePEc:epo:papers:2006-14

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References

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  1. Richard Layard & Stephen Nickell, 1998. "Labour Market Institutions and Economic Performance," CEP Discussion Papers dp0407, Centre for Economic Performance, LSE.
  2. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
  3. Lalive, Rafael & Zweimüller, Josef, 2002. "Benefit Entitlement and Unemployment Duration: The Role of Policy Endogeneity," CEPR Discussion Papers 3363, C.E.P.R. Discussion Papers.
  4. Andrew Glyn, 2003. "Labor Market Institutions and Unemployment: A Critical Assessment of the Cross-Country Evidence," Economics Series Working Papers 168, University of Oxford, Department of Economics.
  5. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages C1-33, March.
  6. Stephen Nickell & Luca Nunziata & Wolfgang Ochel, 2005. "Unemployment in the OECD Since the 1960s. What Do We Know?," Economic Journal, Royal Economic Society, vol. 115(500), pages 1-27, 01.
  7. Ours, J.C. van & Vodopivec, M., 2005. "How Changes in Benefits Entitlement Affect the Duration of Unemployment," Discussion Paper 2005-30, Tilburg University, Center for Economic Research.
  8. Manning, Alan, 1998. " Comment on B. Holmlund, "Unemployment Insurance in Theory and Practice."," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 143-45, March.
  9. Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147, September.
  10. Virginia Hernanz & Franck Malherbet & Michele Pellizzari, 2004. "Take-Up of Welfare Benefits in OECD Countries: A Review of the Evidence," OECD Social, Employment and Migration Working Papers 17, OECD Publishing.
  11. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Economics Department Working Papers 486, OECD Publishing.
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Citations

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Cited by:
  1. Sebastian Weber, 2006. "Labor Market Structures, Trade and their Effect on Unemployment: A Theoretical Analysis and Empirical Investigation," IHEID Working Papers 22-2006, Economics Section, The Graduate Institute of International Studies.
  2. Richard Freeman, 2008. "Labor Market Institutions Around the World," CEP Discussion Papers dp0844, Centre for Economic Performance, LSE.
  3. repec:hal:journl:hal-00185083 is not listed on IDEAS
  4. John Schmitt & Dean Baker, 2006. "Old Europe Goes to Work: Rising Employment Rates in the European Union," CEPR Reports and Issue Briefs 2006-23, Center for Economic and Policy Research (CEPR).
  5. Rafael Fernández & Enrique Palazuelos, 2009. "Labor productivity: a comparative analysis of the European Union and United States, for the period 1994-2007," Working Papers wp208, Political Economy Research Institute, University of Massachusetts at Amherst.
  6. Sharkh, Miriam Abu, 2008. "Are there optimal global configurations of labour market flexibility and security? : Tackling the "flexicurity" oxymoron," ILO Working Papers 424147, International Labour Organization.
  7. Carlin, Wendy & Soskice, David, 2007. "Reforms, Macroeconomic Policy and Economic Performance in Germany," CEPR Discussion Papers 6415, C.E.P.R. Discussion Papers.
  8. Harald Hagemann & Ralf Rukwid, 2007. "Perspectives of Workers with Low Qualifications in Germany under the Pressures of Globalization and Technical Progress," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 291/2007, Department of Economics, University of Hohenheim, Germany.

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