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Technology, labour regulation, and nonparametric panel data modelling

Author

Listed:
  • Antonio Musolesi

    (University of Ferrara
    SEEDS)

  • Mario Nosvelli

    (IRCRES (Research Institute on Sustainable Economic Growth), CNR (National Research Council)
    Catholic University of the Sacred Heart)

Abstract

We study the relationship between technology and labour regulation using rich annual country-level large panel data. We depart from previous studies by questioning the assumptions of linearity and cross-sectional independence and exploit recent advancements in semi-nonparametric panel data econometric methods. Alternative proxies for technology as well as various measures of labour regulation are considered. This work refines previous results by showing threshold effects, nonlinearities and complex interaction effects that are obscured in parametric specifications and that have relevant implications for policy. Our findings also highlight that standard approaches that adopt parametric formulations or do not consider cross-sectional dependence are seriously biased.

Suggested Citation

  • Antonio Musolesi & Mario Nosvelli, 2025. "Technology, labour regulation, and nonparametric panel data modelling," Empirical Economics, Springer, vol. 68(4), pages 1799-1828, April.
    • Handle: RePEc:spr:empeco:v:68:y:2025:i:4:d:10.1007_s00181-024-02681-1
    DOI: 10.1007/s00181-024-02681-1
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    More about this item

    Keywords

    Technology; Labour regulation; Unions; Large panel; Cross-sectional dependence; Factor models; Nonparametric regression; Spline functions;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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