IDEAS home Printed from https://ideas.repec.org/a/pal/compes/v54y2012i2p251-273.html

Labor Market Flexibility and Unemployment: New Empirical Evidence of Static and Dynamic Effects

Author

Listed:
  • Lorenzo E Bernal-Verdugo

    (University of Chicago, 1126 E. 59th Street, Chicago, IL 60637, USA.)

  • Davide Furceri

    (International Monetary Fund and University of Palermo, IMF, 700 19th Street, NW, Washington DC 20431, USA. E-mails: dfurceri@IMF.org, furceri@economia.unipa.it)

  • Dominique Guillaume

    (International Monetary Fund, 700 19th Street NW, 20431 Washington DC, USA.)

Abstract

The aim of this paper is to analyze the relationship between labor market flexibility and unemployment outcomes. Using a panel of 97 countries from 1985 to 2008, the results of the paper suggest that improvements in labor market flexibility have a statistically and significant negative impact on unemployment outcomes (over unemployment, youth unemployment, and long-term unemployment). Among the different labor market flexibility indicators analyzed, hiring and firing regulations and hiring costs are found to have the strongest effect.

Suggested Citation

  • Lorenzo E Bernal-Verdugo & Davide Furceri & Dominique Guillaume, 2012. "Labor Market Flexibility and Unemployment: New Empirical Evidence of Static and Dynamic Effects," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 251-273, June.
    • Handle: RePEc:pal:compes:v:54:y:2012:i:2:p:251-273
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/ces/journal/v54/n2/pdf/ces20123a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/ces/journal/v54/n2/full/ces20123a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:compes:v:54:y:2012:i:2:p:251-273. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.