Impact of Labor Market Institutions on Unemployment: Results from a Global Panel
Additional contact information
Paul Vandenberg: Asian Development Bank
No 219, ADB Economics Working Paper Series from Asian Development Bank
Policies and programs designed to protect workers may, paradoxically, have a negative impact on labor as a whole by increasing unemployment. A key question is which policies have this effect. Using a 3-year panel of 90 countries, the study finds that the unemployment rate is affected by the existence, duration, and replacement rate of unemployment insurance. Hiring and retrenchment regulations and the nature of collective bargaining, however, are not significantly correlated with unemployment. These results are broadly in line with the extensive literature on countries of the Organisation for Economic Co-operation and Development but are at odds with the few cross-country studies that have considered a wider sample. These findings question again whether the deregulation of labor markets in developing countries will improve labor market outcomes.
Keywords: labor market; unemployment; regulation; institutions (search for similar items in EconPapers)
JEL-codes: C53 I21 J24 (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:ris:adbewp:0219
Access Statistics for this paper
More papers in ADB Economics Working Paper Series from Asian Development Bank Contact information at EDIRC.
Series data maintained by Maria Susan M. Torres ().