Labor market institutions and demographic employment patterns

Bertola, Giuseppe; Blau, Francine D.; Kahn, Lawrence M.

doi:10.1007/s00148-007-0137-8

Cited by 260 publications

(248 citation statements)

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“…Nevertheless, recent research (Bertola et al, 2007;Di Tella and MacCulloch, 2005), for instance) suggests that institutional changes affect distinct groups differently, depending on the respective labour supply elasticities. Consequently, we expect that different models are selected once we distinguish between the unemployment rates of males and females.…”

Section: The Role Of Gendermentioning

confidence: 99%

“…Consequently, we expect that different models are selected once we distinguish between the unemployment rates of males and females. According to Bertola et al (2007), we suppose that female employment react stronger to changes in the institutional environment due to a more elastic labour supply. More specifically, the theoretical model of Bertola et al (2007) predicts that female employment reduces more than male employment when stronger unions demand higher wages caused by the steeper labour supply function of females.…”

Section: The Role Of Gendermentioning

confidence: 99%

“…According to Bertola et al (2007), we suppose that female employment react stronger to changes in the institutional environment due to a more elastic labour supply. More specifically, the theoretical model of Bertola et al (2007) predicts that female employment reduces more than male employment when stronger unions demand higher wages caused by the steeper labour supply function of females. Hence, we assume that institutional changes which make the labour market more flexible should reduce female employment more than male employment.…”

Section: The Role Of Gendermentioning

confidence: 99%

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Labour Market Performance in OECD Countries: A Comprehensive Empirical Modelling Approach of Institutional Interdependencies

Sachs

Schleer

2013

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Non-technical SummaryThe recent economic crisis has resulted in a dramatic deterioration of economic growth and labour market performance in various industrialized countries. There is a widespread view that economies under pressure associated with high unemployment or low employment rates need to change their institutional environment. This needs to happen by conducting structural labour market reforms in order to improve labour market performance by, for instance, facilitating job reallocation processes or increasing labour market flexibility. Nevertheless, some authors argue that an institutional reform which is successful in one country might not be equally successful in another economy. A reform is assumed to depend on the country-specific institutional framework. Despite extensive theoretical and empirical contributions about the link between labour market institutions and labour market performance, evidence on the impact of changes of labour market rigidities on labour market performance which take the country-specific institutional framework and potential institutional interactions into account is still scarce.This paper contributes to the literature on interdependent institutional labour market effects by analyzing the impact of interdependencies between institutional factors for the evolution of unemployment. We follow the general theoretical model of Belot and van Ours (2004) in order to select institutional factors which are expected to have (interdependent) effects on the labour market. In order to model interactions in an econometrically correct way, we apply an innovative model selection approach to this literature, which is combined with a classical dynamic fixed-effect estimator for a two-way error component model. In doing so, we identify higher-order institutional interdependencies which matter for unemployment for a panel of 26 countries with annual data ranging from 2001 to 2008. In contrast to the previous literature, this paper is the first to focus on the impact of higher-order institutional interactions on unemployment and one of the first to consider a dynamic model specification in the context of institutional interactions. It thereby allows for a more precise and detailed analysis of the impact of interdependencies between different labour market institutions on labour market performance on a cross-country level.The results suggest that there are substantial qualitative and particularly quantitative differences across countries in the ...

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Section: The Role Of Gendermentioning

confidence: 99%

Section: The Role Of Gendermentioning

confidence: 99%

Section: The Role Of Gendermentioning

confidence: 99%

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Labour Market Performance in OECD Countries: A Comprehensive Empirical Modelling Approach of Institutional Interdependencies

Sachs

Schleer

2013

SSRN Journal

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“…These empirical predictions are supported by a number of papers. While Blanchard (2006) emphasises the magnitude of the youth unemployment problem in Europe, Bertola et al (2002) find that high unemployment for the younger age groups is particularly pronounced in the more unionised countries as well as in those having more stringent employment protection legislation. Such a relationship has also been found by Scarpetta (1996) and Jimeno and Rodriguez-Palenzuela (2003).…”

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confidence: 97%

An essay on the generational effect of employment protection

Chen¹,

Zoëga²

2010

Mathematical Social Sciences

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“…2 However, his argument was recently contested by Pissarides (2009), who presented empirical evidence that the volatility of wages in new jobs, those that proceed from new vacancies, is large compared to the volatility of ongoing wages. Finally, Hagedorn and Manovskii's (2008) solution to the puzzle does not require wage rigidity but assumes a very large value of non market time (some 95% of productivity).…”

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confidence: 99%

Labor market reforms and unemployment dynamics

Murtin

Robin

2018

Labour Economics

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In this paper, we quantify the contribution of labor market reforms to unemployment dynamics in nine OECD countries (Australia, France, Germany, Japan, Portugal, Spain, Sweden, the United Kingdom and the United States). We build and estimate a dynamic stochastic search-matching model with heterogeneous workers, where aggregate shocks to productivity fuel up the cycle, and unanticipated policy interventions shift structural parameters and displace the long-term equilibrium. We show that the heterogeneous-worker mechanism proposed by Robin (2011) to explain unemployment volatility by productivity shocks works well in all countries. The amount of resources injected into placement and employment services, the reduction of UI benefits and product market deregulation stand out as the most prominent policy levers for unemployment reduction. All other LMPs have a significant but lesser impact. We also find that business cycle shocks and LMPs explain about the same share of unemployment volatility (except for Japan, Portugal and the US).JEL classification: E24, E32, J21.

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Labor market institutions and demographic employment patterns

Abstract: Unions, Demographic employment differentials, J21, J23, J51,

Cited by 260 publications

References 59 publications

Labour Market Performance in OECD Countries: A Comprehensive Empirical Modelling Approach of Institutional Interdependencies

Labour Market Performance in OECD Countries: A Comprehensive Empirical Modelling Approach of Institutional Interdependencies

An essay on the generational effect of employment protection

Labor market reforms and unemployment dynamics

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