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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 R.,
  • 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 R., & 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

    as
    1. Layard, R. & Nickell, S., 1991. "Unemployment in the OECD Countries," Economics Series Working Papers 99130, University of Oxford, Department of Economics.
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    4. Bertola, Giuseppe & Blau, Francine D & Kahn, Lawrence, 2001. "Comparative Analysis of Labour Market Outcomes: Lessons for the US from International Long-Run Evidence," CEPR Discussion Papers 3023, C.E.P.R. Discussion Papers.
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    6. 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.
    7. Richard B. Freeman, 2000. "The US Economic Model at Y2K: Lodestar for Advanced Capitalism?," NBER Working Papers 7757, National Bureau of Economic Research, Inc.
    8. Albert Ma, Ching-to & Weiss, Andrew M., 1993. "A signaling theory of unemployment," European Economic Review, Elsevier, vol. 37(1), pages 135-157, January.
    9. Michèle Belot & Jan C. van Ours, 2004. "Does the recent success of some OECD countries in lowering their unemployment rates lie in the clever design of their labor market reforms?," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 621-642, October.
    10. 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.
    11. van Ours, Jan C. & Belot, Michèle, 2000. "Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Ma," CEPR Discussion Papers 2492, C.E.P.R. Discussion Papers.
    12. Nickell, S., 1991. "Wages, Unemployment and Population Change," Economics Series Working Papers 99122, University of Oxford, Department of Economics.
    13. Howell, David (ed.), 2004. "Fighting Unemployment: The Limits of Free Market Orthodoxy," OUP Catalogue, Oxford University Press, number 9780195165852, Decembrie.
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    15. 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. 2002-17, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
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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. Ronchi, Maddalena & di Mauro, Filippo, 2017. "Wage bargaining regimes and firms' adjustments to the Great Recession," Working Paper Series 2051, European Central Bank.
    3. 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, Prague University of Economics and Business, vol. 2015(7), pages 877-894.
    4. Alka Obadić & Vladimir Arčabić & Lucija Rogić Dumančić, 2021. "Labor market institutions convergence in the European Union," EFZG Working Papers Series 2102, Faculty of Economics and Business, University of Zagreb.
    5. Vasiliki Bozani, 2011. "NAIRU, Unemployment and Post Keynesian Economics," Working Papers 1104, University of Crete, Department of Economics.
    6. 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.
    7. Silvia Fedeli & Vitantonio Mariella & Marco Onofri, 2018. "Determinants of Joblessness During the Economic Crisis: Impact of Criminality in the Italian Labour Market," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(2), pages 559-588, September.
    8. Bruno Amable & Lilas Demmou & Donatella Gatti, 2007. "Employment Performance and Institutions: New Answers to an Old Question," Working Papers hal-04021096, HAL.
    9. Margarita Katsimi & Sarantis Kalyvitis & Thomas Moutos, 2009. ""Unwarranted" Wage Changes and the Return on Capital," CESifo Working Paper Series 2804, CESifo.
    10. 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.
    11. Ding, Hong, 2012. "Unemployment and Welfare State: What do the Data Tell Us?," MPRA Paper 41921, University Library of Munich, Germany.
    12. Tony Fang & Fiona MacPhail, 2008. "Transitions from Temporary to Permanent Work in Canada: Who Makes the Transition and Why?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 88(1), pages 51-74, August.
    13. Michal Tvrdoň, 2008. "Institucionální aspekty fungování trhu práce [Institutional aspects of labour market]," Politická ekonomie, Prague University of Economics and Business, vol. 2008(5), pages 621-642.
    14. Bruno Amable & Lilas Demmou & Donatella Gatti, 2006. "Institutions, unemployment and inactivity in the OECD countries," Working Papers halshs-00590495, HAL.
    15. Vasiliki Bozani, 2011. "NAIRU, Unemployment and Post Keynesian Economics," Working Papers 1105, University of Crete, Department of Economics.
    16. Giorgio Liotti, 2022. "Labour Market Regulation and Youth Unemployment in the EU-28," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(1), pages 77-103, March.
    17. Fiona MacPhail & Paul Bowles, 2008. "Temporary work and neoliberal government policy: evidence from British Columbia, Canada," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(5), pages 545-563.
    18. 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.
    19. 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.

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