Identifying asymmetric effects of labor market reforms

Britta Gehrke and Enzo Weber

No 201723, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "This paper investigates whether the effects of structural labor market reforms depend on the business cycle. Based on search and matching theory, we propose an unobserved components approach with Markov switching to distinguish the effects of structural reforms that increase the flexibility of the labor market in recession and expansion. Our results for Germany and Spain show that reforms have substantially weaker expansionary effects in the short-run when implemented in recessions. In consequence, reforms are unlikely to mitigate the impact of crisis in the short-run. From a policy perspective, these results highlight the costs of introducing reforms in recessions." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Spanien; Stichprobe der Integrierten Arbeitsmarktbiografien (SIAB); Auswirkungen; Beschäftigungseffekte; Konjunkturabhängigkeit; Konjunkturaufschwung; matching; Reformpolitik; Rezession; Arbeitsmarktpolitik; Arbeitsplatzsuchtheorie; 1980-2014 (search for similar items in EconPapers)
JEL-codes: C32 E02 E32 J08 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2017
New Economics Papers: this item is included in nep-eec, nep-eur, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published in/as: European Economic Review, (2017), o. Sz., doi:10.1016/j.euroecorev.2018.07.006

Downloads: (external link)
https://doku.iab.de/discussionpapers/2017/dp2317.pdf

Related works:
Journal Article: Identifying asymmetric effects of labor market reforms (2018)
Working Paper: Identifying Asymmetric Effects of Labor Market Reforms (2018)
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:iab:iabdpa:201723

Access Statistics for this paper

More papers in IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] Contact information at EDIRC.
Bibliographic data for series maintained by IAB, Geschäftsbereich Wissenschaftliche Fachinformation und Bibliothek ().