Unemployment, institutions and reform complementarities: Re-assessing the aggregate evidence for OECD countries

Andrea Bassanini and Romain Duval

Post-Print from HAL

Abstract: There is no or limited consensus on the quantitative impact of institutions on unemployment, which has led some to question the case for structural reforms. Recent studies suggest also that institutions interact with each other and cannot be analysed in isolation. In this paper, we estimate a standard reduced-form model to explore the institutional determinants of unemployment and assess its robustness using a large battery of robustness checks. We show that, although the impact of each individual policy varies across countries due to policy interactions, the simple linear model can be used to draw inferences for countries with an average mix of institutions. The model is then extended to encompass systemic interactions, in which individual policies interact with the overall institutional framework. We find relatively robust evidence of broad reform complementarities.

Keywords: institutions; aggregate unemployment; reform complementarities (search for similar items in EconPapers)
Date: 2009
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00395144
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (197)

Published in Oxford Review of Economic Policy, 2009, 25 (1), pp.40-59

Downloads: (external link)
https://shs.hal.science/halshs-00395144/document (application/pdf)

Related works:
Journal Article: Unemployment, institutions, and reform complementarities: re-assessing the aggregate evidence for OECD countries (2009)
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:hal:journl:halshs-00395144

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().