On the Impact of Structural Reforms on Output and Employment: Evidence from a Cross-country Firm-level Analysis

By Luiza Antoun de Almeida, Vybhavi Balasundharam

April 6, 2018

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Luiza Antoun de Almeida, and Vybhavi Balasundharam. On the Impact of Structural Reforms on Output and Employment: Evidence from a Cross-country Firm-level Analysis, (USA: International Monetary Fund, 2018) accessed November 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper analyzes the effects of selected structural reforms on output and employment in the short and medium term. It uses a comprehensive cross-country firm-level dataset covering both advanced and emerging market economies over the period 2003-2014. In line with previous studies, it finds that structural reforms have in general a positive impact on output and employment in the medium term. Furthermore, the paper also assesses whether the impact of structural reforms varies with firm-specific characteristics, such as size, leverage, profitability, and sector. We find evidence that firm characteristics do influence the effectiveness of structural reforms. These findings have relevant policy implications as they help policymakers tailor the design of structural reforms to maximize their payoffs, taking into account their heterogeneous impact on firms.

Subject: Commodity markets, Employment, Financial markets, Labor, Labor market reforms, Macrostructural analysis, Production, Production growth, Productivity, Structural reforms

Keywords: Commodity markets, Europe, Firm characteristic, Firm-level data, Firms' output, Firms profit, Global, Labor market reforms, Leveraged firm, Orbis dataset, Panel dataset, Potential growth, Production growth, Productivity, Structural reforms, WP

Publication Details

Pages:

35
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2018/073
Stock No:

WPIEA2018073
ISBN:

9781484350393
ISSN:

1018-5941

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