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

Author/Editor:

Luiza Antoun de Almeida ; Vybhavi Balasundharam

Publication Date:

April 6, 2018

Electronic Access:

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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.

Series:

Working Paper No. 18/73

Subject:

English

Publication Date:

April 6, 2018

ISBN/ISSN:

9781484350393/1018-5941

Stock No:

WPIEA2018073

Format:

Paper

Pages:

36

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