Labor Market Flexibility and Unemployment: New Empirical Evidence of Static and Dynamic Effects
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Summary:
The aim of this paper is to analyze the relationship between labor market flexibility and unemployment outcomes. Using a panel of 97 countries from 1985 to 2008, the results of the paper suggest that improvements in labor market flexibility have a statistically and significant negative impact on unemployment outcomes (over unemployment, youth unemployment and long-term unemployment). Among the different labor market flexibility indicators analyzed, hiring and firing regulations and hiring costs are found to have the strongest effect.
Series:
Working Paper No. 2012/064
Subject:
Labor market flexibility Labor market institutions Labor markets Unemployment Unemployment rate
English
Publication Date:
March 1, 2012
ISBN/ISSN:
9781463938413/1018-5941
Stock No:
WPIEA2012064
Pages:
28
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