The Determinants of Labor Market Institutions: A Panel Data Study

Jaewon Kim ()

No 2006:10, Research Papers in Economics from Stockholm University, Department of Economics

Abstract: This paper analyzes the argument that labor market institutions can be thought of devices for social insurance. It investigates the hypotheses that a country’s exposure to external risk and ethnic fractionalization are correlated with labor market institutions. Extreme bounds analysis with the panel data of 40 years indicates that there is no robust evidence of positive correlation between external risk and the structure of labor market institutions, while ethnic fractionalization is robust negatively correlated with the institutions.

Keywords: labor market institutions; external risk; ethnic fractionalization; extreme bounds analysis (search for similar items in EconPapers)
JEL-codes: C23 J08 P48 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2006-12-03, Revised 2006-12-06
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:sunrpe:2006_0010

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