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Labour market institutions and unemployment: an international panel data analysis

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  • Gebhard Flaig

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  • Horst Rottmann

    ()

Abstract

This paper deals with the effects of labour market institutions on unemployment in a panel of 19 OECD countries for the period 1960–2000. In contrast to many other studies, we use long time series and analyse cyclically adjusted trend values of the unemployment rate. Our novel contribution is the estimation of panel models where we allow for heterogeneous effects of institutions on unemployment. Our main results are, first, that on the average tighter employment protection, a higher tax burden on labour income and a more generous unemployment insurance system increase, whereas a higher centralization of wage negotiations decreases unemployment, and secondly, that the magnitude of the effects of institutions differs considerably between countries. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Gebhard Flaig & Horst Rottmann, 2013. "Labour market institutions and unemployment: an international panel data analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(4), pages 635-654, November.
  • Handle: RePEc:kap:empiri:v:40:y:2013:i:4:p:635-654
    DOI: 10.1007/s10663-012-9208-5
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Engelbert Stockhammer & Alexander Guschanski & Karsten Köhler, 2014. "Unemployment, capital accumulation and labour market institutions in the Great Recession," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 11(2), pages 182-194, September.
    2. repec:aka:aoecon:v:67:y:2017:i:3:p:333-357 is not listed on IDEAS
    3. repec:eee:jpolmo:v:39:y:2017:i:5:p:883-908 is not listed on IDEAS
    4. Rottmann, Horst, 2014. "Do unemployment benefits and employment protection influence suicide mortality? An international panel data analysis," Weidener Diskussionspapiere 42, University of Applied Sciences Amberg-Weiden (OTH).

    More about this item

    Keywords

    Employment protection; Labour market institutions; Unemployment; International comparison; J23; E24; J50;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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