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Firing Restrictions, Government Growth, Immigration, and the NAIRU: Evidence from Fifteen OECD Countries

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  • Dimitris Hatzinikolaou
  • Pantelis Kammas

Abstract

Using a Phillips-type equation and annual aggregate data from 15 Organization for Economic Cooperation and Development (OECD) countries, we estimate the effects of the following policies on the ‘non‐accelerating inflation rate of unemployment’ (NAIRU): restrictions on firing, growth in government ‘productive’ expenditure, growth in social security benefits, and lax immigration policy. We consider Greece separately, but treat the other 14 countries as a fixed‐effects panel. Two effects seem to be robust to changes in the sample: restrictions on firing and growth in social security benefits raise the NAIRU.

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  • Dimitris Hatzinikolaou & Pantelis Kammas, 2010. "Firing Restrictions, Government Growth, Immigration, and the NAIRU: Evidence from Fifteen OECD Countries," LABOUR, CEIS, vol. 24(4), pages 441-455, December.
    • Handle: RePEc:bla:labour:v:24:y:2010:i:4:p:441-455
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    File URL: http://hdl.handle.net/10.1111/j.1467-9914.2010.00497.x
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    Cited by:

    1. Chletsos, Michael & Roupakias, Stelios, 2012. "The impact of immigration on the greek labor market," MPRA Paper 39872, University Library of Munich, Germany.
    2. International Labour Office, 2014. "Productive jobs for Greece," Studies on Growth with Equity 486634, International Labour Office, Research Department.
    3. Valerija Botric, 2012. "NAIRU estimates for Croatia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 30(1), pages 163-180.
    4. Dimitris Hatzinikolaou & Konstantina Girtzimani & Christos Mousafiris, 2015. "A Reduced-form Equation for the Unemployment Rate Estimated from a Panel of Nineteen OECD Countries," The Economic and Social Review, Economic and Social Studies, vol. 46(3), pages 389-397.
    5. Milasi, Santo. & Pignatti, Clemente. & Silvander, Johanna., 2014. "Productive jobs for Greece," Studies on Growth with Equity, International Labour Office, Research Department, number 994866343402676, October.

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