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Long-term unemployment in the varieties of capitalism

  • Chilosi, Alberto

This paper considers how the different varieties of capitalism affect the rate of long-term unemployment. The liberal market variety, where employment protection is the lowest, presents lower rates of long-term unemployment than the continental European, or the Mediterranean varieties. In the latter both employment protection and long-term unemployment are the highest and labour market participation the lowest. But the social-democratic Scandinavian variety gets the best of both worlds: low rates of long-term unemployment, high rates of labour participation, lower degree of inequality, together with relatively high levels of employment protection. Low rates of long-term unemployment and high levels of labour participation are also produced by the far-Eastern Asian variety, but at the cost of a markedly dualistic labour market structure.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 44752.

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Date of creation: 05 Mar 2013
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Handle: RePEc:pra:mprapa:44752
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  1. Bruno Amable, 2008. "Structural reforms in Europe and the (in)coherence of institutions," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00340417, HAL.
  2. Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147, March.
  3. Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
  4. Clark, Andrew E. & Postel-Vinay, Fabien, 2005. "Job Security and Job Protection," IZA Discussion Papers 1489, Institute for the Study of Labor (IZA).
  5. Alberto Chilosi, 2012. "Stakeholder Protection, Varieties of Capitalism, and Long-Term Unemployment," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 9(2), pages 197-228, August.
  6. David Grubb & Jae-Kap Lee & Peter Tergeist, 2007. "Addressing Labour Market Duality in Korea," OECD Social, Employment and Migration Working Papers 61, OECD Publishing.
  7. John Martin & Stefano Scarpetta, 2012. "Setting It Right: Employment Protection, Labour Reallocation and Productivity," De Economist, Springer, vol. 160(2), pages 89-116, June.
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