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Labour Market Institutions and the Employment Intensity of Output Growth. An International Comparison

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  • Gebhard Flaig
  • Horst Rottmann

Abstract

This paper deals with the effects of labour market institutions on labour market performance. We analyse as an indicator for the labour intensity of output growth the employment threshold (the minimum growth rate of output necessary to keep employment constant). We show for a sample of 17 OECD countries for the period 1971 to 2002 that the strictness of employment protection raises the employment threshold in all econometric specifications. A higher wage bargaining coordination and a higher tax wedge reduce also the labour intensity of production, although the effects are not significant in all econometric specifications.

Suggested Citation

  • Gebhard Flaig & Horst Rottmann, 2007. "Labour Market Institutions and the Employment Intensity of Output Growth. An International Comparison," CESifo Working Paper Series 2175, CESifo.
    • Handle: RePEc:ces:ceswps:_2175
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Alexei Izyumov, 2010. "Human Costs of Post-communist Transition: Public Policies and Private Response," Review of Social Economy, Taylor & Francis Journals, vol. 68(1), pages 93-125.
    2. Emilia Herman, 2011. "The Impact of Economic Growth Process on Employment in European Union Countries," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(42), pages 47-67, December.
    3. Emilia HERMAN, 2012. "The Influence of the Economic Growth Process on Romanian Employment," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 5-12.
    4. Laura Patache, 2013. "Employment and Regional Inequality in Romania," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(4), pages 259-266, August.
    5. Primož Dolenc & Suzana Laporšek, 2010. "Tax Wedge on Labour and its Effect on Employment Growth in the European Union," Prague Economic Papers, Prague University of Economics and Business, vol. 2010(4), pages 344-358.

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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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