RT Journal Article
T1 Do labor market institutions matter for business cycle fluctuations?
A1 Gnocchi, Stefano
A1 Lagerborg, Andresa
A1 Pappa, Evi
AB Using panel data of 19 OECD countries observed over 40 years and data on specific labor market reform episodes we conclude that labor market institutions matter for business cycle fluctuations. Spearman partial rank correlations reveal that more flexible institutions are associated with lower business cycle volatility. Turning to the analysis of reform episodes, wage bargaining reforms increase the correlation of the real wage with labor productivity and the volatility of unemployment. Employment protection reforms increase the volatility of employment and decrease the correlation of the real wage with labor productivity. Reforms reducing replacement rates make labor productivity more procyclical.
PB Elsevier
SN 0165-1889
YR 2015
FD 2015-02-01
LK https://hdl.handle.net/10016/34789
UL https://hdl.handle.net/10016/34789
LA eng
NO This project has been financed by the Fundacion Ramon Areces. Pappa also acknowledges the financial support from the Spanish Ministry of Science and Innovation through Grant ECO2009-09847, the Generalitat de Catalunya through Grant SGR2009-00350, and the Barcelona Graduate School Research Network.
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RD 4 jun. 2024