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Unemployment and labour market institutions : the failure of the empirical case for deregulation

  • Baker, Dean
  • Glyn, Andrew
  • Howell, David
  • Schmitt, John

Based on a survey of the literature, assesses the strength of the evidence regarding the effects of labour market institutions and regulations on unemployment. Considers the effects of employment protection, trade union density, bargaining coordination, unemployment benefits, the labour tax wedge and active labour market policies. Argues that empirical results are largely inconclusive and suggests that there is no single model that guarantees successful employment performance.

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Paper provided by International Labour Organization in its series ILO Working Papers with number 374124.

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Length: 28 pages
Date of creation: 2004
Date of revision:
Publication status: Published in Working paper series, Policy Integration Dept.
Handle: RePEc:ilo:ilowps:374124
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  1. Belot, Michèle & van Ours, Jan C, 2000. "Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Market Reforms?," CEPR Discussion Papers 2492, C.E.P.R. Discussion Papers.
  2. 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.
  3. Richard Layard & Stephen Nickell, 1992. "Unemployment in the OECD Countries," CEP Discussion Papers dp0081, Centre for Economic Performance, LSE.
  4. Jean-Paul Fitoussi & David Jestaz & Edmund S. Phelps & Gylfi Zoega, 2000. "Roots of the Recent Recoveries: Labor Reforms or Private Sector Forces?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 237-311.
  5. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages C1-33, March.
  6. Andrew Glyn, 2002. "Labour Market Success and Labour Market Reform: Lessons from Ireland and New Zealand," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2002-03, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
  7. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
  8. repec:spo:wpecon:info:hdl:2441/5571 is not listed on IDEAS
  9. Richard B. Freeman, 2000. "The US Economic Model at Y2K: Lodestar for Advanced Capitalism?," NBER Working Papers 7757, National Bureau of Economic Research, Inc.
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