Labor Market Flexibility and Unemployment : New Empirical Evidence of Static and Dynamic Effects

Author/Editor:

Lorenzo E. Bernal-Verdugo ; Davide Furceri ; Dominique M. Guillaume

Publication Date:

March 1, 2012

Electronic Access:

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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. 12/64

Subject:

English

Publication Date:

March 1, 2012

ISBN/ISSN:

9781463938413/1018-5941

Stock No:

WPIEA2012064

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

28

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