The author analyses the relationship between labour market institutions and unemployment for 20 industrial countries. He examines, whether there is a non-linear relationship between institutions and unemployment. The author estimates country-specific equations and as well as panel data models. He draws the conclusion that there is a non-linear relationship between labour market institutions and unemployment. However, the institutions have played only a minor role for the level and development of unemployment in recent decades.
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Paper provided by IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute in its series IMK Studies with number
03-2007.