Labor market institutions and economic performance
In: Handbook of Labor Economics
Barely a day goes by without some expert telling us how the continental European economies are about to disintegrate unless their labor markets become more flexible. Basically, we are told, Europe has the wrong sort of labor market institutions for the modern global economy. These outdated institutions both raise unemployment and lower growth rates. The truth of propositions such as these depends on which labor market institutions really are bad for unemployment and growth, and which are not. Our purpose in this chapter is to set out what we know about this question. Our conclusions indicate that the labor market institutions on which policy should be focussed are unions and social security systems. Encouraging product market competition is a key policy to eliminate the negative effects of unions. For social security the key policies are benefit reform linked to active labor market policies to move people from welfare to work. By comparison, time spent worrying about strict labor market regulations, employment protection and minimum wages is probably time largely wasted.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
|This chapter was published in: ||This item is provided by Elsevier in its series Handbook of Labor Economics with number
3-46.||Handle:|| RePEc:eee:labchp:3-46||Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description|
When requesting a correction, please mention this item's handle: RePEc:eee:labchp:3-46. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.