This paper discusses the role of labour market policy and institutional factors in explaining the differences in structural or "equilibrium" unemployment across 17 OECD countries. The results suggest that these factors do matter for the level of structural unemployment and for the speed of labour market adjustment after an exogenous shock. In particular, generous unemployment benefit systems and stringent employment protection legislation are associated with high unemployment and a lower speed of adjustment. Greater coordination among social partners in the wage bargaining process as well as both highly centralised and fully decentralised bargaining systems are beneficial to labour market performance.
ASSESSING THE ROLE OF LABOUR MARKET POLICIES AND INSTITUTIONAL SETTINGS ON UNEMPLOYMENT: A CROSS-COUNTRY STUDY
Scarpetta S
1996-01-01
Abstract
This paper discusses the role of labour market policy and institutional factors in explaining the differences in structural or "equilibrium" unemployment across 17 OECD countries. The results suggest that these factors do matter for the level of structural unemployment and for the speed of labour market adjustment after an exogenous shock. In particular, generous unemployment benefit systems and stringent employment protection legislation are associated with high unemployment and a lower speed of adjustment. Greater coordination among social partners in the wage bargaining process as well as both highly centralised and fully decentralised bargaining systems are beneficial to labour market performance.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
