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Unemployment and labour market institutions : the failure of the empirical case for deregulation

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Author Info

  • Baker, Dean
  • Glyn, Andrew
  • Howell, David
  • Schmitt, John

Abstract

Based on a survey of the literature, assesses the strength of the evidence regarding the effects of labour market institutions and regulations on unemployment. Considers the effects of employment protection, trade union density, bargaining coordination, unemployment benefits, the labour tax wedge and active labour market policies. Argues that empirical results are largely inconclusive and suggests that there is no single model that guarantees successful employment performance.

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File URL: http://www.ilo.org/public/libdoc/ilo/2004/104B09_442_engl.pdf
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Bibliographic Info

Paper provided by International Labour Organization in its series ILO Working Papers with number 374124.

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Length: 28 pages
Date of creation: 2004
Date of revision:
Publication status: Published in Working paper series, Policy Integration Dept.
Handle: RePEc:ilo:ilowps:374124

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Related research

Keywords: unemployment; labour policy; labour relations; employment security; unemployment benefit; measurement; OECD countries; literature survey; chômage; politique du travail; relations de travail; sécurité de l'emploi; prestations de chômage; mesure; pays de l'OCDE; revue de littérature; desempleo; política laboral; relaciones laborales; seguridad en el empleo; prestaciones por desempleo; medición; países de la OCDE; artículo bibliográfico;

References

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  1. Belot, M.V.K. & Ours, J.C. van, 2000. "Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Market Reforms?," Discussion Paper, Tilburg University, Center for Economic Research 2000-40, Tilburg University, Center for Economic Research.
  2. Andrew Glyn, 2002. "Labour Market Success and Labour Market Reform: Lessons from Ireland and New Zealand," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2002-03, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
  3. Fitoussi, J-P & Jestaz, D. & Phelps, E.S. & Zoega, G., 2000. "Roots of the Recent Recoveries : Labor Reforms or Private-Sector Forces ?," Documents de Travail de l'OFCE, Observatoire Francais des Conjonctures Economiques (OFCE) 2000-04, Observatoire Francais des Conjonctures Economiques (OFCE).
  4. 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, Royal Economic Society, vol. 110(462), pages C1-33, March.
  5. Richard Layard & Stephen Nickell, 1992. "Unemployment in the OECD Countries," CEP Discussion Papers dp0081, Centre for Economic Performance, LSE.
  6. Dean Baker & Andrew Glyn & David Howell & John Schmitt, 2002. "Labor Market Institutions and Unemployment: A Critical Assessment of the Cross-Country Evidence," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2002-17, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
  7. repec:spo:wpecon:info:hdl:2441/5571 is not listed on IDEAS
  8. Richard B. Freeman, 2000. "The US Economic Model at Y2K: Lodestar for Advanced Capitalism?," NBER Working Papers 7757, National Bureau of Economic Research, Inc.
  9. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
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Citations

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Cited by:
  1. Amable, Bruno & Demmou, Lilas & Gatti, Donatella, 2007. "Employment Performance and Institutions: New Answers to an Old Question," IZA Discussion Papers 2731, Institute for the Study of Labor (IZA).
  2. Ding, Hong, 2012. "Unemployment and Welfare State: What do the Data Tell Us?," MPRA Paper 41921, University Library of Munich, Germany.
  3. Gustav A. Horn & Heike Joebges & Rudolf Zwiener, 2009. "Von der Finanzkrise zur Weltwirtschaftskrise (II)," IMK Report, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute 40-2009, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
  4. Engelbert Stockhammer & Simon Sturn, 2008. "The Impact of Monetary Policy on Unemployment Hysteresis," IMK Working Paper 15-2008, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
  5. Eichhorst, Werner & Feil, Michael & Braun, Christoph, 2008. "What Have We Learned? Assessing Labor Market Institutions and Indicators," IZA Discussion Papers 3470, Institute for the Study of Labor (IZA).
  6. Margarita Katsimi & Sarantis Kalyvitis & Thomas Moutos, 2009. ""Unwarranted" Wage Changes and the Return on Capital," CESifo Working Paper Series 2804, CESifo Group Munich.
  7. Simon STURN, 2013. "Are corporatist labour markets different? Labour market regimes and unemployment in OECD countries," International Labour Review, International Labour Organization, vol. 152(2), pages 237-254, 06.
  8. Eichhorst, Werner & Marx, Paul & Tobsch, Verena, 2009. "Institutional Arrangements, Employment Performance and the Quality of Work," IZA Discussion Papers 4595, Institute for the Study of Labor (IZA).
  9. Gebhard Flaig & Horst Rottmann, 2013. "Labour market institutions and unemployment: an international panel data analysis," Empirica, Springer, vol. 40(4), pages 635-654, November.
  10. Vasiliki Bozani, 2011. "NAIRU, Unemployment and Post Keynesian Economics," Working Papers, University of Crete, Department of Economics 1105, University of Crete, Department of Economics.
  11. Dean Baker, 2006. "The Conservative Nanny State," CEPR Books, Center for Economic and Policy Research (CEPR), number 2006-01.
  12. Peter Auer, 2004. "Geschützte Flexibilität. Arbeitsmarktsicherheit in Zeiten der Globalisierung," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 30(4), pages 487-504.
  13. Horváth, Gergely, 2006. "A munkapiaci intézmények hatása a munkanélküliségi rátára
    [The effect of labour-market institutions on the unemployment rate]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 744-768.
  14. repec:hal:wpaper:halshs-00590495 is not listed on IDEAS
  15. Simon Sturn, 2011. "Labour market regimes and unemployment in OECD countries," IMK Working Paper 6-2011, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
  16. Sarkar, Prabirjit, 2011. "Does employment protection lead to unemployment? A panel data analysis of OECD countries, 1990-2008," MPRA Paper 35547, University Library of Munich, Germany.
  17. Bozani, Vasiliki & Drydakis, Nick, 2011. "Studying the NAIRU and its Implications," IZA Discussion Papers 6079, Institute for the Study of Labor (IZA).

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