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Shaping earnings instability: labour market policy and institutional factors

Denisa Sologon () and Cathal O'Donoghue ()

No 2011-077, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: The concerns regarding economic insecurity stemming from earnings instability have been gaining momentum in the contemporary political discourse. If earnings instability is as a proxy for risk, for risk-averse individuals, increasing earnings instability bears substantial welfare costs. Using the variance of transitory earnings estimated using the European Community Household Panel (ECHP) and the OECD labour market indicators, we explore by means of non-linear least squares the relationship between earnings instability and labour market policies/institutions across Europe in the 1990s.

Keywords: economic insecurity; earnings instability; labour market institutions; labour market policies (search for similar items in EconPapers)
JEL-codes: C23 D31 J31 J60 J50 J08 O15 (search for similar items in EconPapers)
Date: 2011
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Working Paper: Shaping earnings instability: labour market policy and institutional factors (2012) Downloads
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