Can institutional reform reduce job destruction and unemployment duration? Yes it can
"We read search theory’s unemployment equilibrium condition as an Iso-Unemployment Curve(IUC).The IUC is the locus of job destruction rates and expected unemployment durations rendering the same unemployment level. A country’s position along the curve reveals its preferences over the destructio...
| Main Authors: | , |
|---|---|
| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Washington, DC
2012
IMF |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19135544124919537269-Can-institutional-reform-reduc.htm |
| _version_ | 1771659898639089664 |
|---|---|
| author | Pérez, Esther Yao, Yao |
| author_facet | Pérez, Esther Yao, Yao |
| collection | Library items |
| description | "We read search theory’s unemployment equilibrium condition as an Iso-Unemployment Curve(IUC).The IUC is the locus of job destruction rates and expected unemployment durations rendering the same unemployment level. A country’s position along the curve reveals its preferences over the destruction-duration mix, while its distance from the origin indicates the unemployment level at which such preferences are satisfied Using a panel of 20 OECD countries over 1985-2008, we find employment protection legislation to have opposing efects on destructions and durations, while the effects of the remaining key institutional factors on both variables tend to reinforce each other. Implementing the right reforms could reduce job destruction rates by about 0.05 to 0.25 percentage points and shorten unemployment spells by around 10 to 60 days. Consistent with this, unemployment rates would decline by between 0.75 and 5.5 percentage points, depending on a country’s starting position." |
| format | TEXT |
| geographic | OECD countries |
| id | 19135544124919537269_1cbdf0b7986846c69572b513fc479e10 |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19135544124919537269_1cbdf0b7986846c69572b513fc479e10 |
| is_hierarchy_title | Can institutional reform reduce job destruction and unemployment duration? Yes it can |
| language | English |
| physical | 24 p. Digital |
| publishDate | 2012 |
| publisher | Washington, DC IMF |
| spellingShingle | Pérez, Esther Yao, Yao economic model labour market reform statistics unemployment labour market policy Can institutional reform reduce job destruction and unemployment duration? Yes it can |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=112168093034 |
| title | Can institutional reform reduce job destruction and unemployment duration? Yes it can |
| topic | economic model labour market reform statistics unemployment labour market policy |
| url | https://www.labourline.org/KENTIKA-19135544124919537269-Can-institutional-reform-reduc.htm |