A Reduced-form Equation for the Unemployment Rate Estimated from a Panel of Nineteen OECD Countries

Dimitris Hatzinikolaou, Konstantina Girtzimani and Christos Mousafiris
Additional contact information
Konstantina Girtzimani: University of Ioannina, Greece
Christos Mousafiris: University of Ioannina, Greece

The Economic and Social Review, 2015, vol. 46, issue 3, 389-397

Abstract: Using a dynamic fixed-effects model for a panel of nineteen OECD countries and annual aggregate data, 1970-2008, we estimate a reduced-form equation for the observed unemployment rate. We find that wage-push factors, such as employment protection and union power, increase the unemployment rate, whereas net immigration reduces it, although this last effect is practically negligible. We also find that the labour market is characterised by strong “lagged adjustment processes,” so the governments of the countries in the sample have an additional incentive to fight current unemployment, to prevent it from becoming prolonged.

Keywords: unemployment; labour market; OECD (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.esr.ie/article/view/399/115 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eso:journl:v:46:y:2015:i:3:p:389-397

Access Statistics for this article

More articles in The Economic and Social Review from Economic and Social Studies
Bibliographic data for series maintained by Aedin Doris ().