Labor Market Institutions and Labor Market Performance: What Can We Learn from Transition Countries?

Lehmann, Hartmut; Muravyev, Alexander

doi:10.2139/ssrn.1681525

Cited by 31 publications

(37 citation statements)

References 35 publications

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“…28 Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Romania, and United Kingdom. 29 For details on methodology see Lehmann and Muravyev (2009). 30 For description of data sources and discussion of information relevancy of these indicators see Section 1 and Annex 3.…”

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confidence: 99%

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Labor Institutions and Their Impact on Shadow Economies in Europe

Fialová¹,

Schneider²

2011

Policy Research Working Papers

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: This paper analyzes the role of labor market institutions in explaining developments of shadow economies in European countries. We use several alternative measures of the shadow sector, and we examine effects of labor institutions on shadow sector in two specific regions: new and old European Union member countries, as their respective shadow sectors exhibited a different development in the last decade. While the share of shadow economy in GDP averaged 27.7% in the new member countries in 1999-2007, the respective share in the old member states stood at 18.0% only. In our paper, we estimate effects of labor market institutions on two sets of shadow economy indicators-shadow production and shadow employment. Comparing alternative measures of the shadow sector allows more granulated analysis of the labor market institutions effects. Our results indicate that the one institution that unambiguously increases shadow economy production and employment is the strictness of employment protection legislation. Other labor market institutions-active and passive labor market policies, labor taxation, trade union density and the minimum wage setting-have less straightforward and statistically robust effects and their impact often diverge in new and old EU member countries. The differences are not robust enough, however, to allow us to reject the hypothesis of similar effect of labor market institutions in new and old EU member states. Terms of use: Documents in

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“…Lehmann and Muravyev, 2009) include the macro environment and policy variables in a lagged form. The underlying logic is that it is reasonable to expect the outcome of interest in time t to be more related to the hypothesized causal variable in time t-1.…”

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confidence: 99%

Labor Institutions and Their Impact on Shadow Economies in Europe

Fialová¹,

Schneider²

2011

Policy Research Working Papers

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“…A more recent and comprehensive study of the role of labor market institutions in transition economies uses a unique dataset that covers the majority of transition economies, including countries of Central and Eastern Europe, South-Eastern Europe, and most of the successor states of the Soviet Union [6]. It examines labor market outcomes and institutions, including employment protection legislation, and macroeconomic controls from the early to late periods of transition in those economies (from 1995 to 2008).…”

Section: Cross-country Studies For Transition and Emerging Market Ecomentioning

confidence: 99%

Employment protection legislation in transition and emerging markets

Muravyev¹

2014

izawol

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“…Overall, the available evidence in the literature on the impact of labor market institutions and policies on labor market outcomes remains inconclusive and often contradictory. In a comprehensive study of this impact in the transition economies of Eastern Europe and Central Asia, Lehmann and Muravyev (2012) found a robust negative effect of stricter EPL on the employment-to-population ratio and a significant positive impact on youth unemployment. The tax wedge is also found to have a strong depressing impact on the employment-to-population ratio, but not on any of the unemployment types, a result that was interpreted by the authors as "a scenario where high labor costs push workers into informal employment".…”

Section: Labor Market Institutionsmentioning

confidence: 99%

In search of opportunities? The barriers to more efficient internal labor mobility in Ukraine

Koettl

Kupets

Olefir

et al. 2014

IZA J Labor Develop

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Ukraine's economy lacks dynamism, and this is both the cause and the effect of people not moving across the regions. The rate at which Ukrainians move from one region to another within the country is only half of what would be expected in comparison with other countries. This paper examines the barriers that prevent workers from moving within Ukraine, using information from focus group discussions and expert surveys. It also offers recommendations for creating greater labor mobility in Ukraine through addressing institutional bottlenecks and defines five key areas for improvement, including the population registry system, housing and credit markets, vocational education and training systems, labor market institutions, and the social welfare system. JEL Classification: J61; J68; P25

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Labor Market Institutions and Labor Market Performance: What Can We Learn from Transition Countries?

Cited by 31 publications

References 35 publications

Labor Institutions and Their Impact on Shadow Economies in Europe

Labor Institutions and Their Impact on Shadow Economies in Europe

Employment protection legislation in transition and emerging markets

In search of opportunities? The barriers to more efficient internal labor mobility in Ukraine

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