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Labour-market performance in the OECD: some recent cross-country evidence

Author

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  • Sergio Destefanis
  • Giuseppe Mastromatteo

Abstract

Purpose - The purpose of this paper is to assess the evolution of labour-market performance in the Organization for Economic Co-operation and Development (OECD) over the last decade, considering the robustness of the claims made in an important OECD follow-up study. Design/methodology/approach - The paper sets up an empirical framework calibrated on an important OECD follow-up study, and suggests some ways in which the impact of unobserved heterogeneity and outliers on policy estimates can be treated in a cross-section framework. The framework applies to the data for 30 OECD countries. Findings - The paper finds that changes in labour-market performance are inversely linked to lagged unemployment. Changes in the share of construction workers are also significant even in the presence of various kinds of policy change indicators. As far as the latter are concerned, the results highlight the role of unemployment benefits and, especially, active labour-market policies. Research limitations/implications - The kind of policy change indicators used do not allow the adoption of panel data techniques. Practical implications - An important policy role seems to emerge for unemployment benefit reforms and, even more so, active labour-market policies. The evidence also supports the contention that the construction sector is important for labour-market performance. Originality/value - The paper brings to the fore novel evidence about cross-country labour-market performance at a time when this issue is of high interest for citizens and policy-makers.

Suggested Citation

  • Sergio Destefanis & Giuseppe Mastromatteo, 2010. "Labour-market performance in the OECD: some recent cross-country evidence," International Journal of Manpower, Emerald Group Publishing, vol. 31(7), pages 713-731, October.
  • Handle: RePEc:eme:ijmpps:v:31:y:2010:i:7:p:713-731
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    References listed on IDEAS

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    1. Michèle Belot & Jan C. van Ours, 2004. "Does the recent success of some OECD countries in lowering their unemployment rates lie in the clever design of their labor market reforms?," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 621-642, October.
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    Citations

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    Cited by:

    1. Lisi, Domenico, 2013. "The impact of temporary employment and employment protection on labour productivity : evidence from an industry-level panel of EU countries," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 46(2), pages 119-144.
    2. Enrico MARELLI & Elena VAKULENKO, 2014. "Youth Unemployment in Italy and Russia: Aggregate Trends and the Role of Individual Determinants," Working papers of the Department of Economics - University of Perugia (IT) 0001/2014, Università di Perugia, Dipartimento Economia.
    3. Enrico Marelli & Misbah T. Choudhry & Marcello Signorelli, 2013. "Youth and total unemployment rate: the impact of policies and institutions," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 121(1), pages 63-86.
    4. repec:spr:italej:v:3:y:2017:i:1:d:10.1007_s40797-016-0045-8 is not listed on IDEAS
    5. Giovanni S.F. Bruno & Misbah T. Choudhry & Enrico Marelli & Marcello Signorelli, 2014. "Youth Unemployment: Key Determinants and the Impact of Crisis," AIEL Series in Labour Economics,in: Dario Sciulli & Miguel Ángel Malo (ed.), Disadvantaged Workers, edition 1, chapter 7, pages 121-148 AIEL - Associazione Italiana Economisti del Lavoro.
    6. Josef C Brada & Marcello Signorelli, 2012. "Comparing Labor Market Performance: Some Stylized Facts and Key Findings," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 231-250, June.
    7. Marga Peeters & Ard den Reijer, 2014. "Coordination versus flexibility in wage formation: a focus on the nominal wage impact of productivity in Germany, Greece, Ireland, Portugal, Spain and the United States," Applied Economics, Taylor & Francis Journals, vol. 46(7), pages 698-714, March.
    8. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "The role of the education systems and the labour market institutions in enhancing youth employment: a cross-country analysis," Discussion Papers 1_2017, CRISEI, University of Naples "Parthenope", Italy.
    9. Dal Bianco, Silvia & Bruno, Randolph L. & Signorelli, Marcello, 2015. "The joint impact of labour policies and the “Great Recession” on unemployment in Europe," Economic Systems, Elsevier, vol. 39(1), pages 3-26.
    10. Destefanis, Sergio, 2014. "Dualismo e declino nel territorio italiano. Il ruolo delle competenze
      [Dualism and Decline across the Italian Economy. The Role of Skills]
      ," MPRA Paper 55391, University Library of Munich, Germany.

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