Does employment protection lead to unemployment? A panel data analysis of OECD countries, 1990-2008
AbstractThis paper analysed the OECD data on employment protection for 23 OECD countries over the time span 1990-2008 on the basis of alternative dynamic panel data models and panel causality tests and examines the validity of the neo-liberal argument that strictness of employment protection hurts labour through increased long-term and youth unemployment rates. While it finds no empirical basis for this orthodox standpoint it observes that long-term unemployment dampens aggregate production which in turn aggravates unemployment problem.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 35547.
Date of creation: 23 Dec 2011
Date of revision:
labour law; regular job protection; temporary job protection; unemployment rate; long-term unemployment; youth unemployment;
Find related papers by JEL classification:
- J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
- K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
- J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
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