Labor Market Flexibility and Unemployment: New Empirical Evidence of Static and Dynamic Effects

Lorenzo E. Bernal-Verdugo, Davide Furceri and Dominique Guillaume

No 2012/064, IMF Working Papers from International Monetary Fund

Abstract: The aim of this paper is to analyze the relationship between labor market flexibility and unemployment outcomes. Using a panel of 97 countries from 1985 to 2008, the results of the paper suggest that improvements in labor market flexibility have a statistically and significant negative impact on unemployment outcomes (over unemployment, youth unemployment and long-term unemployment). Among the different labor market flexibility indicators analyzed, hiring and firing regulations and hiring costs are found to have the strongest effect.

Keywords: WP; unemployment outcome; flexibility indicator (search for similar items in EconPapers)
Pages: 28
Date: 2012-03-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (71)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25753 (application/pdf)

Related works:
Journal Article: Labor Market Flexibility and Unemployment: New Empirical Evidence of Static and Dynamic Effects (2012)
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:imf:imfwpa:2012/064

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().