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Labor Market Policies and Outcomes: Cross Country Evidence for the EU-27

Author

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  • Rovelli, Riccardo

    () (University of Bologna)

  • Bruno, Randolph Luca

    () (University College London)

Abstract

We conduct a comparative analysis of Labor Market Policies and outcomes for the EU member states, for the period 2000-2005. We document the main differences in Labor Market Policies across EU members, including new member states after 2004. We focus on indicators of policy generosity (expenditures relative to GDP) and relate these and other policy indicators to indicators of labor market outcomes and performance. Our results show that, on a cross-country basis, higher rates of employment are in general associated with: (i) higher expenditures on labor market policies, especially on active policies; (ii) a lower degree of rigidity in labor market institutions and in product market regulation.

Suggested Citation

  • Rovelli, Riccardo & Bruno, Randolph Luca, 2007. "Labor Market Policies and Outcomes: Cross Country Evidence for the EU-27," IZA Discussion Papers 3161, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp3161
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    References listed on IDEAS

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    1. James J. Heckman & Carmen Pagés, 2004. "Law and Employment: Lessons from Latin America and the Caribbean," NBER Books, National Bureau of Economic Research, Inc, number heck04-1, June.
    2. Paul DeGrauwe & Magdalena Polan, 2005. "Globalization And Social Spending," Pacific Economic Review, Wiley Blackwell, vol. 10(1), pages 105-123, February.
    3. André Sapir, 2006. "Globalization and the Reform of European Social Models," Journal of Common Market Studies, Wiley Blackwell, vol. 44(2), pages 369-390, June.
    4. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Social, Employment and Migration Working Papers 35, OECD Publishing.
    5. Dar, Amit & Tzannatos, Zafiris, 1999. "Active labor market programs: a review of the evidence from evaluations," Social Protection and Labor Policy and Technical Notes 20116, The World Bank.
    6. Giuseppe Nicoletti & Stefano Scarpetta, 2005. "Regulation and Economic Performance: Product Market Reforms and Productivity in the OECD," OECD Economics Department Working Papers 460, OECD Publishing.
    7. Howell David R. & Baker Dean & Glyn Andrew & Schmitt John, 2007. "Are Protective Labor Market Institutions at the Root of Unemployment? A Critical Review of the Evidence," Capitalism and Society, De Gruyter, vol. 2(1), pages 1-73, May.
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    Cited by:

    1. Irène Selwaness & Chahir Zaki, 2015. "On the Interaction Between Trade Reforms and Labor Market Regulation: Evidence from the MENA Countries' Labor Markets," Working Papers 970, Economic Research Forum, revised Nov 2015.
    2. Vladimir Gligorov & Anna Iara & Michael Landesmann & Robert Stehrer & Hermine Vidovic, 2008. "Western Balkan Countries: Adjustment Capacity to External Shocks, with a Focus on Labour Markets," wiiw Research Reports 352, The Vienna Institute for International Economic Studies, wiiw.

    More about this item

    Keywords

    labor market policies; labor market outcomes; European social models;

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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