Can Labor Market Flexibility Affect Unemployment? A Panel Data Analysis
Abstract
The paper estimates the impact of labor market flexibility on unemployment outcomes, for a large set of countries during 2000-2010. We estimated both static and dynamic model. Our empirical analysis shows that most of the macroeconomic and demographic variables and market labor flexibility indicators reduce unemployment and youth unemployment rates. By contrast, we cannot rule out a negative impact of macroeconomic variables when we consider long-term unemployment rate. Our finding suggests some policy conclusions that can help economic policymakers to reduce unemployment.
Full Text: PDF
Abstract
The paper estimates the impact of labor market flexibility on unemployment outcomes, for a large set of countries during 2000-2010. We estimated both static and dynamic model. Our empirical analysis shows that most of the macroeconomic and demographic variables and market labor flexibility indicators reduce unemployment and youth unemployment rates. By contrast, we cannot rule out a negative impact of macroeconomic variables when we consider long-term unemployment rate. Our finding suggests some policy conclusions that can help economic policymakers to reduce unemployment.
Full Text: PDF
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