Globalization and labor market institutions: International empirical evidence

Niklas Potrafke

Journal of Comparative Economics, 2013, vol. 41, issue 3, 829-842

Abstract: A widespread concern is that labor market institutions erode in the course of globalization, which, in turn, decreases employment and wages. By using panel data and cross-sectional data, I investigate the influence of globalization on labor market regulation. I use the indicators of labor market institutions by Gwartney et al. (2012) and the KOF indices of globalization. To deal with potential reverse causality, I employ a system GMM panel estimator and use a constructed trade share as proposed by Frankel and Romer (1999) as an instrumental variable for globalization in cross-sectional models. The results do not show that globalization induced labor market deregulation.

Keywords: Globalization; Labor market institutions (search for similar items in EconPapers)
JEL-codes: F16 J58 J88 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (63)

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Working Paper: Globalization and Labor Market Institutions: International Empirical Evidence (2013)
Working Paper: Globalization and labor market institutions: International empirical evidence (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:41:y:2013:i:3:p:829-842

DOI: 10.1016/j.jce.2013.02.002

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