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Institutional Arrangements, Employment Performance and the Quality of Work

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Author Info

  • Eichhorst, Werner

    ()
    (IZA)

  • Marx, Paul

    ()
    (University of Southern Denmark)

  • Tobsch, Verena

    ()
    (IZA)

Abstract

The observation of highly regulated, but successful economies has given rise to the hypothesis of various viable models of labor market adaptability. The paper presents a quantitative indicator that tries to avoid a simplified flexibility-rigidity dichotomy and provides a detailed picture of the varying institutional configurations by which flexibility is achieved. In order to capture different patterns of flexibility, we differentiate between five types of flexibility which can be combined (external-numerical, internal-numerical, external-functional, Internal-functional, and wage flexibility). Following the dominant analytical perspective in comparative labor market research the indicator is limited to the institutional level (de jure variables). Besides institutional variables influencing external numerical flexibility (employment protection, unemployment benefit system and active labor market policies, taxation and wage setting) we include further institutions which can be assumed to influence adaptability (education, working-time arrangements and firm-specific vocational training).

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4595.

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Length: 33 pages
Date of creation: Nov 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4595

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Related research

Keywords: labor market institutions; flexibility; indicators;

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References

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  1. 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).
  2. Seifert, Hartmut & Tangian, Andranik, 2007. "Flexicurity: Reconciling Social Security with Flexibility - Empirical Findings for Europe," WSI Discussion Papers 154, Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung.
  3. 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.
  4. Richard B. Freeman, 2005. "Labour Market Institutions Without Blinders: The Debate over Flexibility and Labour Market Performance," NBER Working Papers 11286, National Bureau of Economic Research, Inc.
  5. 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.
  6. Baker, Dean & Glyn, Andrew & Howell, David & Schmitt, John, 2004. "Unemployment and labour market institutions : the failure of the empirical case for deregulation," ILO Working Papers 374124, International Labour Organization.
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Citations

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Cited by:
  1. Eichhorst, Werner & Tobsch, Verena, 2013. "Has atypical work become typical in Germany? : country case studies on labour market segmentation," ILO Working Papers 481496, International Labour Organization.
  2. Alexander Herzog-Stein & Fabian Lindner & Simon Sturn, 2013. "Explaining the German Employment Miracle in the Great Recession – The Crucial Role of Temporary Working Time Reductions," IMK Working Paper 114-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
  3. Eichhorst, Werner & Tobsch, Verena, 2013. "Has Atypical Work Become Typical in Germany?," IZA Discussion Papers 7609, Institute for the Study of Labor (IZA).
  4. Eichhorst, Werner, 2012. "The Unexpected Appearance of a New German Model," IZA Discussion Papers 6625, Institute for the Study of Labor (IZA).

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