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

Author

Listed:
  • Baker, Dean.
  • Glyn, Andrew.
  • Howell, David.
  • Schmitt, John.

Abstract

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.

Suggested Citation

  • Baker, Dean. & Glyn, Andrew. & Howell, David. & Schmitt, John., 2004. "Unemployment and labour market institutions : the failure of the empirical case for deregulation," ILO Working Papers 993741243402676, International Labour Organization.
  • Handle: RePEc:ilo:ilowps:993741243402676
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    File URL: http://www.ilo.org/public/libdoc/ilo/2004/104B09_442_engl.pdf
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    References listed on IDEAS

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    1. Layard, R. & Nickell, S., 1991. "Unemployment in the OECD Countries," Economics Series Working Papers 99130, University of Oxford, Department of Economics.
    2. 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 1-33, March.
    3. 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.
    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. Richard B. Freeman, 2000. "The US Economic Model at Y2K: Lodestar for Advanced Capitalism?," NBER Working Papers 7757, National Bureau of Economic Research, Inc.
    6. Albert Ma, Ching-to & Weiss, Andrew M., 1993. "A signaling theory of unemployment," European Economic Review, Elsevier, vol. 37(1), pages 135-157, January.
    7. Worswick,G. D. N., 1991. "Unemployment: A Problem of Policy," Cambridge Books, Cambridge University Press, number 9780521400343, April.
    8. repec:spo:wpecon:info:hdl:2441/5571 is not listed on IDEAS
    9. Nickell, S., 1991. "Wages, Unemployment and Population Change," Economics Series Working Papers 99122, University of Oxford, Department of Economics.
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    Citations

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    Cited by:

    1. Engelbert Stockhammer & Simon Sturn, 2012. "The impact of monetary policy on unemployment hysteresis," Applied Economics, Taylor & Francis Journals, vol. 44(21), pages 2743-2756, July.
    2. Amable, Bruno & Demmou, Lilas & Gatti, Donatella, 2007. "Employment Performance and Institutions: New Answers to an Old Question," IZA Discussion Papers 2731, Institute for the Study of Labor (IZA).
    3. Ronchi, Maddalena & di Mauro, Filippo, 2017. "Wage bargaining regimes and firms' adjustments to the Great Recession," Working Paper Series 2051, European Central Bank.
    4. Margarita Katsimi & Sarantis Kalyvitis & Thomas Moutos, 2009. ""Unwarranted" Wage Changes and the Return on Capital," CESifo Working Paper Series 2804, CESifo Group Munich.
    5. Horváth, Gergely, 2006. "A munkapiaci intézmények hatása a munkanélküliségi rátára
      [The effect of labour-market institutions on the unemployment rate]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 744-768.
    6. Zuzana Potužáková & Stanislava Mildeová, 2015. "Analýza příčin a důsledků nezaměstnanosti mladých v Evropské unii
      [Analysis of Causes and Consequences of the Youth Unployment in the EU]
      ," Politická ekonomie, University of Economics, Prague, vol. 2015(7), pages 877-894.
    7. Vasiliki Bozani, 2011. "NAIRU, Unemployment and Post Keynesian Economics," Working Papers 1104, University of Crete, Department of Economics.
    8. Nazia Anjum & Zahid Perviz, 2016. "Effect of Trade Openness on Unemployment in Case of Labour and Capital Abundant Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(1), pages 44-58, March.
    9. Sarkar, Prabirjit, 2011. "Does employment protection lead to unemployment? A panel data analysis of OECD countries, 1990-2008," MPRA Paper 35547, University Library of Munich, Germany.
    10. Johanna Kemper, 2016. "Resolving the Ambiguity: A Meta-Analysis of the Effect of Employment Protection on Employment and Unemployment," KOF Working papers 16-405, KOF Swiss Economic Institute, ETH Zurich.
    11. Vasiliki Bozani, 2011. "NAIRU, Unemployment and Post Keynesian Economics," Working Papers 1105, University of Crete, Department of Economics.

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