Institutions and Labor Reallocation

Giuseppe Bertola and Richard Rogerson

No 5828, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Despite stringent dismissal restrictions in most European countries, rates of job creation and destruction are remarkably similar across European and North American labor markets. This paper shows that relative-wage compression is conducive to higher employer-initiated job turnover, and argues that wagesetting institutions and job-security provisions differ across countries in ways that are both consistent with rough uniformity of job turnover statistics and readily explained by intuitive theoretical considerations. When viewed as a component of the mix of institutional differences in Europe and North America, European dismissal restrictions are essential to a proper interpretation of both similar patterns in job turnover and marked differences in unemployment flows.

JEL-codes: J31 J63 (search for similar items in EconPapers)
Date: 1996-11
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published as Bertola, Giuseppe & Rogerson, Richard. "Institutions and labor reallocation," European Economic Review, Elsevier, vol. 41(6), pages 1147-1171, June 1997

Downloads: (external link)
http://www.nber.org/papers/w5828.pdf (application/pdf)

Related works:
Journal Article: Institutions and labor reallocation (1997)
Working Paper: Institutions and Labour Reallocation (1996)
Working Paper: Institutions and Labor Reallocation (1996)
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:nbr:nberwo:5828

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w5828

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().