Labour Market Institutions and Unemployment: Does Finance Matter?

Christophe Rault and Anne-Gaël Vaubourg ()
Additional contact information
Anne-Gaël Vaubourg: University of Orléans

No 5606, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We explore whether finance influences the impact of labour market institutions on unemployment. Using a data set of 18 OECD countries over 1980-2004, we estimate a panel VectorAutoRegressive model. We check whether causalities from labour market variables to unemployment are affected by financial factors. In Belgium, Italy, Australia, Japan and Spain, accounting for financial indicators mitigates the benefits of labour market flexibilization or makes it harmful to employment. In Austria, Canada, Finland and Portugal, it reduces its detrimental impact or makes it beneficial. In Ireland and Netherlands, both effects prevail, depending on the labour market indicator used.

Keywords: financial factors; labour market; unemployment; institutional interactions; panel VAR (search for similar items in EconPapers)
JEL-codes: E24 J23 P17 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2011-03
New Economics Papers: this item is included in nep-lab and nep-mac
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: Comparative Economic Studies, 2012, 54 (1), 43 - 64

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Related works:
Working Paper: Labour Market Institutions and Unemployment: does Finance Matter? (2013)
Working Paper: Labour Market Institutions and Unemployment: does Finance Matter? (2012)
Working Paper: Labour Market Institutions and Unemployment: does Finance Matter? (2011)
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