Unemployment, institutions and reform complementarities: Re-assessing the aggregate evidence for OECD countries
AbstractThere is no or limited consensus on the quantitative impact of institutions on unemployment, which has led some to question the case for structural reforms. Recent studies suggest also that institutions interact with each other and cannot be analysed in isolation. In this paper, we estimate a standard reduced-form model to explore the institutional determinants of unemployment and assess its robustness using a large battery of robustness checks. We show that, although the impact of each individual policy varies across countries due to policy interactions, the simple linear model can be used to draw inferences for countries with an average mix of institutions. The model is then extended to encompass systemic interactions, in which individual policies interact with the overall institutional framework. We find relatively robust evidence of broad reform complementarities.
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Bibliographic InfoPaper provided by HAL in its series Post-Print with number halshs-00395144.
Date of creation: 2009
Date of revision:
Publication status: Published, Oxford Review of Economic Policy, 2009, 25, 1, 40-59
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00395144/en/
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institutions; aggregate unemployment; reform complementarities;
Other versions of this item:
- Andrea Bassanini & Romain Duval, 2009. "Unemployment, institutions, and reform complementarities: re-assessing the aggregate evidence for OECD countries," Oxford Review of Economic Policy, Oxford University Press, vol. 25(1), pages 40-59, Spring.
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