Labor Market Rigidity and Structural Shocks: An Open-Economy Approach for International Comparisons
Elías Albagli,
Pablo Garcia Silva and
Jorge Restrepo
Working Papers Central Bank of Chile from Central Bank of Chile
Abstract:
We construct performance-based measures of labor market rigidity considering an open economy framework. We derive and estimate an indicator that depends exclusively on the theoretical measure of unions' bargaining power, with which we rank a sample of 18 heterogeneous countries. The indicator is obtained from unemployment persistence to structural shocks identified using a SVAR with longrun restrictions. We find that Korea, Hong Kong, Chile and the US are relatively flexible, while Germany, Sweden, Spain and Colombia are among the most rigid labor markets. Our index shows high correlation with labor market performance and institutional regulation variables, mainly associated to union representation.
Date: 2004-05
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)
Downloads: (external link)
https://www.bcentral.cl/documents/33528/133326/DTBC_263.pdf (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:chb:bcchwp:263
Access Statistics for this paper
More papers in Working Papers Central Bank of Chile from Central Bank of Chile Contact information at EDIRC.
Bibliographic data for series maintained by Alvaro Castillo (dtbc@bcentral.cl).