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Labor Market Policies, Institutions and Employment Rates in the EU-27

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  • Rovelli, Riccardo

    ()
    (University of Bologna)

  • Bruno, Randolph Luca

    ()
    (University College London)

Abstract

We compare labor market policies, institutions and outcomes for the EU member states, for the period 2000-2005. We document the main differences in Labor Market Policies across EU members, including new member states after 2004. We focus on indicators of policy generosity (expenditures relative to GDP) and relate these and other policy indicators to indicators of labor market outcomes and performance. Our results show that, on a cross-country basis, higher rates of employment are in general associated with: (i) higher expenditures on labor market policies, especially on active policies for countries with a high pro-work attitude; (ii) a lower degree of rigidity in labor market institutions and in product market regulation.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3502.

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Length: 44 pages
Date of creation: May 2008
Date of revision:
Publication status: published in: Journal of Common Market Studies, 2010, 48 (3), 661-685
Handle: RePEc:iza:izadps:dp3502

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Related research

Keywords: European social models; labor market outcomes; labor market policies;

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References

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  1. Howell David R. & Baker Dean & Glyn Andrew & Schmitt John, 2007. "Are Protective Labor Market Institutions at the Root of Unemployment? A Critical Review of the Evidence," Capitalism and Society, De Gruyter, vol. 2(1), pages 1-73, May.
  2. Giuseppe Nicoletti & Stefano Scarpetta, 2005. "Regulation and Economic Performance: Product Market Reforms and Productivity in the OECD," OECD Economics Department Working Papers 460, OECD Publishing.
  3. James J. Heckman & Carmen Pagés, 2004. "Law and Employment: Lessons from Latin America and the Caribbean," NBER Books, National Bureau of Economic Research, Inc, number heck04-1, July.
  4. André Sapir, 2006. "Globalization and the Reform of European Social Models," Journal of Common Market Studies, Wiley Blackwell, vol. 44(2), pages 369-390, 06.
  5. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Social, Employment and Migration Working Papers 35, OECD Publishing.
  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. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection Discussion Papers 29142, The World Bank.
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Cited by:
  1. Averett, Susan L. & Argys, Laura & Kohn, Jennifer L., 2012. "Immigration, Obesity and Labor Market Outcomes in the UK," IZA Discussion Papers 6454, Institute for the Study of Labor (IZA).
  2. Susan Averett & Laura Argys & Jennifer Kohn, 2012. "Immigration, obesity and labor market outcomes in the UK," IZA Journal of Migration, Springer, vol. 1(1), pages 1-19, December.
  3. Gina Cristina Dimian & Bogdan Ileanu & Josef Jablonský & Jan Fábry, 2013. "Analysis of European Labour Market in the Crisis Context," Prague Economic Papers, University of Economics, Prague, vol. 2013(1), pages 50-71.

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