Is Deregulation Necessary? The Effects of Employment Protection on Unemployment
Using new data, the paper examines the effect of employment protection legislation (EPL) on aggregate and youth unemployment in advanced OECD economies and in Central and Eastern Europe during 1980–2009. The analysis assesses both the direct and indirect effects of EPL on levels of unemployment, as well as the short-term and long-term effects of changes in EPL on changes in unemployment. The results offer no clear support for the argument that EPL is a cause of either aggregate or youth unemployment. While EPL reaches statistical significance at conventional levels in some models, the results are sensitive to small changes in the sample or the use of alternative estimators. The only finding that appears robust concerns the interaction between EPL and the tax wedge, which suggests some scope for reform complementarity in tackling youth labour market problems. On the whole, the analysis suggests that government efforts to tackle unemployment by deregulating EPL alone may well be unwarranted.
|Date of creation:||23 Sep 2013|
|Contact details of provider:|| Postal: Zvolenská 29, 821 09 Bratislava|
Phone: +421 907 931 150
Fax: +421 2 5341 8524
Web page: http://www.celsi.sk/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dean Baker & Andrew Glyn & David Howell & John Schmitt, 2002.
"Labor Market Institutions and Unemployment: A Critical Assessment of the Cross-Country Evidence,"
SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization.
2002-17, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
- Andrew Glyn, 2003. "Labor Market Institutions and Unemployment: A Critical Assessment of the Cross-Country Evidence," Economics Series Working Papers 168, University of Oxford, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:cel:dpaper:17. 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: (Martin Kahanec)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.