Labor market reforms and unemployment dynamics
Fabrice Murtin and
Jean-Marc Robin
No 13/14, CeMMAP working papers from Institute for Fiscal Studies
Abstract:
In this paper, we quantify the contribution of labor market reforms to unemployment dynamics in nine OECD countries (Australia, France, Germany, Japan, Portugal, Spain,Sweden, the United Kingdom and the United States). We build and estimate a dynamicstochastic search-matching model with heterogeneous workers, where aggregate shocks toproductivity fuel up the cycle, and unanticipated policy interventions shift structural parameters and displace the long-term equilibrium. We show that the heterogeneous-worker mechanism proposed by Robin (2011) to explain unemployment volatility by productivity shocks works well in all countries. The amount of resources injected into placement and employment services, the reduction of UI benefits and product market deregulation stand out as the most prominent policy levers for unemployment reduction. All other LMPs have a significant but lesser impact. We also find that business cycle shocks and LMPs explain about the same share of unemployment volatility (except for Japan, Portugal andthe US).
Date: 2014-03-14
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://www.cemmap.ac.uk/wp-content/uploads/2020/08/CWP1314.pdf (application/pdf)
Related works:
Journal Article: Labor market reforms and unemployment dynamics (2018) 
Working Paper: Labor Market Reforms and Unemployment Dynamics (2018) 
Working Paper: Labor Market Reforms and Unemployment Dynamics (2018) 
Working Paper: Labor market reforms and unemployment dynamics (2014) 
Working Paper: Labor market reforms and unemployment dynamics (2014) 
Working Paper: Labor market reforms and unemployment dynamics (2014) 
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:azt:cemmap:13/14
DOI: 10.1920/wp.cem.2014.1314
Access Statistics for this paper
More papers in CeMMAP working papers from Institute for Fiscal Studies Contact information at EDIRC.
Bibliographic data for series maintained by Dermot Watson ().