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A decade of labour market reforms in the EU: insights from the LABREF database

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  • Alessandro Turrini

    ()

  • Gabor Koltay

    ()

  • Fabiana Pierini

    ()

  • Clarisse Goffard

    ()

  • Aron Kiss

    ()

Abstract

This paper analyses the main features and determinants of labour market reforms in the EU over the period of 2000–2011 using the European Commission LABREF database. The data suggests that the timing, focus, and geographical distribution of reforms reflect the interplay between economic shocks and existing institutions. The 2008 crisis was followed by increased policy activity in most policy domains in a large number of EU countries, initially to cushion the impact of the crisis on employment and incomes, subsequently to improve the adjustment capacity of labour markets. Regression analysis indicates that reform activism is stronger in countries with lower GDP per capita and long-standing EU membership, under critical economic and labour market conditions, and where political costs are low. The direction of reforms is affected by economic and labour market conditions, available fiscal space, and by initial policy settings. JEL classification: J20, J38, J48, J58, J68 Copyright Turrini et al. 2015

Suggested Citation

  • Alessandro Turrini & Gabor Koltay & Fabiana Pierini & Clarisse Goffard & Aron Kiss, 2015. "A decade of labour market reforms in the EU: insights from the LABREF database," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-33, December.
  • Handle: RePEc:spr:izalpo:v:4:y:2015:i:1:p:1-33:10.1186/s40173-015-0038-5
    DOI: 10.1186/s40173-015-0038-5
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    References listed on IDEAS

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    1. repec:eee:streco:v:44:y:2018:i:c:p:34-45 is not listed on IDEAS
    2. Dragos Adascalitei & Clemente Pignatti Morano, 2016. "Drivers and effects of labour market reforms: Evidence from a novel policy compendium," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-32, December.
    3. Povilas Lastauskas & Julius Stakenas, 2016. "Openness and Structural Labour Market Reforms: Counterfactuals for Lithuania," Bank of Lithuania Discussion Paper Series 1, Bank of Lithuania.
    4. Bertola, Giuseppe, 2016. "Labor policies and capital mobility in theory and in EMU," European Economic Review, Elsevier, vol. 87(C), pages 62-77.
    5. Romeo-Victor IONESCU, 2015. "European Economy Vs The Trap Of The Europe 2020 Strategy," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 2, pages 215-233.
    6. Giuseppe Bertola, 2016. "Finance, Labour, Capital, and International Integration," Manchester School, University of Manchester, vol. 84(S1), pages 1-14, September.
    7. Martina Basarac Sertic & Anita Ceh Casni & Valentina Vuckovic, 2015. "Impact of labour market reforms on economic activity in European Union: short term costs and long term benefits," Financial Theory and Practice, Institute of Public Finance, vol. 39(1), pages 83-107.
    8. Giorgia Casalone & Federico Biagi, 2016. "INNOREG: A Comprehensive Dataset on Government Policies Affecting Innovation," JRC Working Papers JRC99570, Joint Research Centre (Seville site).
    9. Trevisan, Elisabetta & Zantomio, Francesca, 2016. "The impact of acute health shocks on the labour supply of older workers: Evidence from sixteen European countries," Labour Economics, Elsevier, vol. 43(C), pages 171-185.
    10. Iva Tomic, 2016. "What drives youth unemployment in Europe?," Working Papers 1601, The Institute of Economics, Zagreb.
    11. Mamatzakis, Emmanuel & Tsionas, Mike G. & Kumbhakar, Subal C. & Koutsomanoli-Filippaki, Anastasia, 2015. "Does labour regulation affect technical and allocative efficiency? Evidence from the banking industry," Journal of Banking & Finance, Elsevier, vol. 61(S1), pages 84-98.

    More about this item

    Keywords

    Labour market; Labour market reform; Unemployment; Financial crisis; European Union;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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