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Employment to Output Elasticities & Reforms towards Flexicurity: Evidence from OECD Countries

Holger Görg (), Cecília Hornok, Catia Montagna and George Onwordi
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Holger Görg: Kiel Institute for the World Economy

No 12004, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: How do labour market policies influence employment's responsiveness to output fluctuations (employment-output elasticity)? We revisit this question on a panel of OECD countries, which also incorporates the period of the Great Recession. We distinguish between passive and active labour market policies and allow for their interactions, i.e. the policy mix, to play a role. We find that the effects of any single policy change are shaped by the broader existing policy-mix within which it takes place. Finally, we evaluate the effect of a move to 'flexicurity' on the employment-output elasticity in each country.

Keywords: employment-output elasticity; labour market policy; welfare state; flexicurity (search for similar items in EconPapers)
JEL-codes: E24 E32 J21 J65 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-lma and nep-mac
Date: 2018-11
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