IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/18965.html

Labor Market Reforms and Unemployment Fluctuations

Author

Listed:
  • Bettarelli, Luca
  • Duval, Romain
  • Furceri, Davide
  • Jalles, Joao Tovar

Abstract

This paper examines the role of unemployment benefits (UB) and employment protection legislation (EPL) reforms in shaping the response of unemployment to output changes. Results—based on local projection estimates for an unbalanced sample of 27 advanced economies during the period 1970-2019—suggest that reforms reducing the generosity of UB dampen the response of unemployment to output changes, while reforms reducing the stringency of EPL amplify it. Results are robust to a battery of robustness checks, including control for potential confounder effects and an instrumental variable approach to address endogeneity.

Suggested Citation

  • Bettarelli, Luca & Duval, Romain & Furceri, Davide & Jalles, Joao Tovar, 2024. "Labor Market Reforms and Unemployment Fluctuations," CEPR Discussion Papers 18965, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:18965
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP18965
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Takeuchi, Mamiko, 2026. "The impact of employment protection reform on the working conditions of fixed-term employees in Japan," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 1191-1217.
    3. Su, Yu & Xu, Bin & Zeng, Xin, 2026. "How does entry deregulation affect employment: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 1-20.

    More about this item

    Keywords

    ;

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:18965. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CEPR (email available below). General contact details of provider: https://cepr.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.