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Long-term unemployment in the varieties of capitalism

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  • Chilosi, Alberto

Abstract

This paper considers how the different varieties of capitalism affect the rate of long-term unemployment. The liberal market variety, where employment protection is the lowest, presents lower rates of long-term unemployment than the continental European, or the Mediterranean varieties. In the latter both employment protection and long-term unemployment are the highest and labour market participation the lowest. But the social-democratic Scandinavian variety gets the best of both worlds: low rates of long-term unemployment, high rates of labour participation, lower degree of inequality, together with relatively high levels of employment protection. Low rates of long-term unemployment and high levels of labour participation are also produced by the far-Eastern Asian variety, but at the cost of a markedly dualistic labour market structure.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 44752.

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Date of creation: 05 Mar 2013
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Handle: RePEc:pra:mprapa:44752

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Keywords: Long-term unemployment; varieties of capitalism; economic fallacies;

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  1. Andrew E. Clark & Fabien Postel-Vinay, 2004. "Job security and job protection," DELTA Working Papers 2004-16, DELTA (Ecole normale supérieure).
  2. John Martin & Stefano Scarpetta, 2012. "Setting It Right: Employment Protection, Labour Reallocation and Productivity," De Economist, Springer, vol. 160(2), pages 89-116, June.
  3. Bruno Amable, 2008. "Structural reforms in Europe and the (in)coherence of institutions," Documents de travail du Centre d'Economie de la Sorbonne r08063, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  4. David Grubb & Jae-Kap Lee & Peter Tergeist, 2007. "Addressing Labour Market Duality in Korea," OECD Social, Employment and Migration Working Papers 61, OECD Publishing.
  5. Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147.
  6. Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
  7. Alberto Chilosi, 2012. "Stakeholder Protection, Varieties of Capitalism, and Long-Term Unemployment," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 9(2), pages 197-228, August.
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