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Labour market institutions without blinders: The debate over flexibility and labour market performance


  • Richard Freeman


The debate over the influence of labour market flexibility on performance is unlikely to be settled by additional studies using aggregate data and making cross-country comparisons. While this approach holds little promise, micro-analysis of workers and firms and increased use of experimental methods represent a path forward. Steps along this path could help end the current 'lawyer's case' empiricism in which priors dominate evidence.

Suggested Citation

  • Richard Freeman, 2005. "Labour market institutions without blinders: The debate over flexibility and labour market performance," International Economic Journal, Taylor & Francis Journals, vol. 19(2), pages 129-145.
  • Handle: RePEc:taf:intecj:v:19:y:2005:i:2:p:129-145 DOI: 10.1080/10168730500080675

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    References listed on IDEAS

    1. Layard, R. & Nickell, S., 1991. "Unemployment in the OECD Countries," Economics Series Working Papers 99130, University of Oxford, Department of Economics.
    2. Easterly, William & Kremer, Michael & Pritchett, Lant & Summers, Lawrence H., 1993. "Good policy or good luck?: Country growth performance and temporary shocks," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 459-483, December.
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    More about this item


    Flexibility; performance; aggregate data;

    JEL classification:

    • J0 - Labor and Demographic Economics - - General


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