Unemployment at risk: the policy determinants of labour market exposure to economic shocks
Alain de Serres () and
Fabrice Murtin ()
Sciences Po publications from Sciences Po
This paper examines the vulnerability of labour markets to adverse economic shocks. We define labour market exposure as the cumulated amount of excess unemployment generated by a shock before unemployment returns to steady-state. We use a panel of 19 countries covering the period 1985–2010 to assess the influence of labour market policies on labour market exposure, which is also calculated country by country. We find that less generous unemployment insurance, more active labour market policies or a lower minimum wage imply a trade-off between average unemployment and labour market exposure, as they help low-skilled workers to get out of unemployment at the cost of increased vulnerability to adverse shocks. On the other hand, reducing the tax wedge is conducive to both lower steady-state unemployment and labour market exposure.
Keywords: Unemployment; Labour market policies; Adverse economic shocks (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Published in Economic Policy, 2014, vol. 29, pp.603-637
Downloads: (external link)
https://spire.sciencespo.fr/hdl:/2441/2cnlir7arl8a ... mployment-atrisk.pdf (application/pdf)
Journal Article: Unemployment at risk: the policy determinants of labour market exposure to economic shocks (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spo:wpmain:info:hdl:2441/2cnlir7arl8aaqa8hvkgkr7mqn
Access Statistics for this paper
More papers in Sciences Po publications from Sciences Po Contact information at EDIRC.
Bibliographic data for series maintained by Spire @ Sciences Po Library ().