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Institutional Arrangements, Employment Performance and the Quality of Work

Author

Listed:
  • Eichhorst, Werner

    (IZA)

  • Marx, Paul

    (University of Bonn)

  • Tobsch, Verena

    (E-x-AKT WIRTSCHAFTSFORSCHUNG)

Abstract

The observation of highly regulated, but successful economies has given rise to the hypothesis of various viable models of labor market adaptability. The paper presents a quantitative indicator that tries to avoid a simplified flexibility-rigidity dichotomy and provides a detailed picture of the varying institutional configurations by which flexibility is achieved. In order to capture different patterns of flexibility, we differentiate between five types of flexibility which can be combined (external-numerical, internal-numerical, external-functional, Internal-functional, and wage flexibility). Following the dominant analytical perspective in comparative labor market research the indicator is limited to the institutional level (de jure variables). Besides institutional variables influencing external numerical flexibility (employment protection, unemployment benefit system and active labor market policies, taxation and wage setting) we include further institutions which can be assumed to influence adaptability (education, working-time arrangements and firm-specific vocational training).

Suggested Citation

  • Eichhorst, Werner & Marx, Paul & Tobsch, Verena, 2009. "Institutional Arrangements, Employment Performance and the Quality of Work," IZA Discussion Papers 4595, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4595
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    References listed on IDEAS

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    1. Eichhorst, Werner & Feil, Michael & Braun, Christoph, 2008. "What Have We Learned? Assessing Labor Market Institutions and Indicators," IZA Discussion Papers 3470, Institute of Labor Economics (IZA).
    2. 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.
    3. Richard Freeman, 2005. "Labour market institutions without blinders: The debate over flexibility and labour market performance," International Economic Journal, Taylor & Francis Journals, vol. 19(2), pages 129-145.
    4. Olivier Blanchard, 2006. "European unemployment: the evolution of facts and ideas [‘The macroeconomics of low inflation’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 21(45), pages 6-59.
    5. repec:ilo:ilowps:374124 is not listed on IDEAS
    6. Stephen Nickell & Luca Nunziata & Wolfgang Ochel, 2005. "Unemployment in the OECD Since the 1960s. What Do We Know?," Economic Journal, Royal Economic Society, vol. 115(500), pages 1-27, January.
    7. Seifert, Hartmut & Tangian, Andranik, 2007. "Flexicurity: Reconciling Social Security with Flexibility - Empirical Findings for Europe," WSI Working Papers 154, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    8. 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.
    9. Tangian, Andranik, 2007. "Flexibility-Flexicurity-Flexinsurance: Response to the European Commission's Green Paper "Modernising Labour Law to Meet the Challenges of the 21st Century"," WSI Working Papers 149, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ronald Bachmann & Peggy Bechara & Anica Kramer & Sylvi Rzepka, 2015. "Labour market dynamics and worker heterogeneity during the Great Recession – Evidence from Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-29, December.
    2. Ronald Bachmann & Peggy Bechara & Anica Kramer & Sylvi Rzepka, 2014. "Labour Market Dynamics and Worker Heterogeneity During the Great Recession – Evidence from Europe," Ruhr Economic Papers 0499, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Eichhorst, Werner & Tobsch, Verena, 2013. "Has Atypical Work Become Typical in Germany?," IZA Discussion Papers 7609, Institute of Labor Economics (IZA).
    4. Eichhorst, Werner. & Tobsch, Verena., 2013. "Has atypical work become typical in Germany? : country case studies on labour market segmentation," ILO Working Papers 994814963402676, International Labour Organization.
    5. repec:ilo:ilowps:481496 is not listed on IDEAS
    6. Werner Eichhorst, 2015. "The Unexpected Appearance of a New German Model," British Journal of Industrial Relations, London School of Economics, vol. 53(1), pages 49-69, March.
    7. repec:zbw:rwirep:0499 is not listed on IDEAS
    8. van Treeck, Till. & Sturn, Simon., 2012. "Income inequality as a cause of the Great Recession? : A survey of current debates," ILO Working Papers 994709343402676, International Labour Organization.
    9. Alexander Herzog-Stein & Fabian Lindner & Simon Sturn, 2013. "Explaining the German Employment Miracle in the Great Recession – The Crucial Role of Temporary Working Time Reductions," IMK Working Paper 114-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.

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    More about this item

    Keywords

    labor market institutions; flexibility; indicators;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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