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Impact of Labour Regulation on Unemployment: A Case Study of France, Germany, UK and USA

Author

Listed:
  • Sarkar, Prabirjit

Abstract

This paper examines the state of labour protection in four countries (UK, USA, France and Germany) during 1970-2006. It supports the contention of the legal-origin theory that UK and USA (common law countries) intervene less in the labour market and grant less protection to labourers. It also supports the proposition that the problem of unemployment is more acute in the civil law countries (France and Germany). But it finds no direct relationship between various aspects of labour regulation and unemployment rate. Hence, we conclude that the explanation of more acute unemployment problem in France and Germany should be sought elsewhere.

Suggested Citation

  • Sarkar, Prabirjit, 2011. "Impact of Labour Regulation on Unemployment: A Case Study of France, Germany, UK and USA," MPRA Paper 32928, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:32928
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    File URL: https://mpra.ub.uni-muenchen.de/32928/1/MPRA_paper_32928.pdf
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    References listed on IDEAS

    as
    1. Pesaran, M. Hashem & Smith, Ron, 1995. "Estimating long-run relationships from dynamic heterogeneous panels," Journal of Econometrics, Elsevier, vol. 68(1), pages 79-113, July.
    2. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    3. Edward F. Blackburne III & Mark W. Frank, 2007. "Estimation of nonstationary heterogeneous panels," Stata Journal, StataCorp LP, vol. 7(2), pages 197-208, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    law and economics; labour law; legal origin theory; unemployment rate; long-term unemployment; youth unemployment;

    JEL classification:

    • J80 - Labor and Demographic Economics - - Labor Standards - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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