Fiscal adjustments, labour market flexibility and unemployment

Luca Agnello (), Vitor Castro, Joao Jalles and Ricardo Sousa

Economics Letters, 2014, vol. 124, issue 2, 231-235

Abstract: Using a panel of 17 countries for 1978–2009, we find that tax-driven consolidations increase unemployment by 0.25 percentage points. Labour market flexibility mitigates this: a one-point rise in the flexibility index reduces youth (long-term) unemployment by 0.6–0.7 (1.8–2.2) percentage points.

Keywords: Fiscal adjustments; Labour market flexibility; Unemployment; Youth and long-term unemployment (search for similar items in EconPapers)
JEL-codes: E24 H12 H62 H63 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:124:y:2014:i:2:p:231-235

DOI: 10.1016/j.econlet.2014.05.029

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