Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Market Reforms?

M.V.K. Belot, J.C. van Ours

Research output: Working paperDiscussion paperOther research output

290 Downloads (Pure)

Abstract

The development of the unemployment rate differs substantially between OECD countries. In recent years some countries experienced a mild increase, other countries had a stable unemployment rate, while there are also 'successful' countries in which the unemployment rate decreased a lot. A common feature of the successful countries is that they implemented a comprehensive set of institutional reforms. In this paper we present a theoretical and empirical framework to investigate how unemployment is affected by different labour market institutions (LMI) such as labour taxes, unemployment benefits, employment protection, union bargaining power and (de)centralisation of bargaining. We argue that complementarities between LMI can be exploited to improve labour market performance. In our empirical analysis of annual data over the period 1960-1995 of eighteen OECD countries we show that interactions between LMI are indeed important.
Original languageEnglish
Place of PublicationTilburg
PublisherMacroeconomics
Number of pages42
Volume2000-40
Publication statusPublished - 2000

Publication series

NameCentER Discussion Paper
Volume2000-40

Fingerprint

Unemployment rate
OECD countries
Labour market reform
Labor market institutions
Bargaining power
Unemployment
Institutional reform
Labor tax
Empirical analysis
Common features
Complementarity
Employment protection
Labour market
Unemployment benefits
Decentralization
Market performance
Interaction

Keywords

  • OECD
  • unemployment
  • institutions
  • complementarities
  • reforms

Cite this

Belot, M. V. K., & van Ours, J. C. (2000). Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Market Reforms? (CentER Discussion Paper; Vol. 2000-40). Tilburg: Macroeconomics.
@techreport{aec993bf1022447783075e004cea674f,
title = "Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Market Reforms?",
abstract = "The development of the unemployment rate differs substantially between OECD countries. In recent years some countries experienced a mild increase, other countries had a stable unemployment rate, while there are also 'successful' countries in which the unemployment rate decreased a lot. A common feature of the successful countries is that they implemented a comprehensive set of institutional reforms. In this paper we present a theoretical and empirical framework to investigate how unemployment is affected by different labour market institutions (LMI) such as labour taxes, unemployment benefits, employment protection, union bargaining power and (de)centralisation of bargaining. We argue that complementarities between LMI can be exploited to improve labour market performance. In our empirical analysis of annual data over the period 1960-1995 of eighteen OECD countries we show that interactions between LMI are indeed important.",
keywords = "OECD, unemployment, institutions, complementarities, reforms",
author = "M.V.K. Belot and {van Ours}, J.C.",
note = "Pagination: 42",
year = "2000",
language = "English",
volume = "2000-40",
series = "CentER Discussion Paper",
publisher = "Macroeconomics",
type = "WorkingPaper",
institution = "Macroeconomics",

}

Belot, MVK & van Ours, JC 2000 'Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Market Reforms?' CentER Discussion Paper, vol. 2000-40, Macroeconomics, Tilburg.

Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Market Reforms? / Belot, M.V.K.; van Ours, J.C.

Tilburg : Macroeconomics, 2000. (CentER Discussion Paper; Vol. 2000-40).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Market Reforms?

AU - Belot, M.V.K.

AU - van Ours, J.C.

N1 - Pagination: 42

PY - 2000

Y1 - 2000

N2 - The development of the unemployment rate differs substantially between OECD countries. In recent years some countries experienced a mild increase, other countries had a stable unemployment rate, while there are also 'successful' countries in which the unemployment rate decreased a lot. A common feature of the successful countries is that they implemented a comprehensive set of institutional reforms. In this paper we present a theoretical and empirical framework to investigate how unemployment is affected by different labour market institutions (LMI) such as labour taxes, unemployment benefits, employment protection, union bargaining power and (de)centralisation of bargaining. We argue that complementarities between LMI can be exploited to improve labour market performance. In our empirical analysis of annual data over the period 1960-1995 of eighteen OECD countries we show that interactions between LMI are indeed important.

AB - The development of the unemployment rate differs substantially between OECD countries. In recent years some countries experienced a mild increase, other countries had a stable unemployment rate, while there are also 'successful' countries in which the unemployment rate decreased a lot. A common feature of the successful countries is that they implemented a comprehensive set of institutional reforms. In this paper we present a theoretical and empirical framework to investigate how unemployment is affected by different labour market institutions (LMI) such as labour taxes, unemployment benefits, employment protection, union bargaining power and (de)centralisation of bargaining. We argue that complementarities between LMI can be exploited to improve labour market performance. In our empirical analysis of annual data over the period 1960-1995 of eighteen OECD countries we show that interactions between LMI are indeed important.

KW - OECD

KW - unemployment

KW - institutions

KW - complementarities

KW - reforms

M3 - Discussion paper

VL - 2000-40

T3 - CentER Discussion Paper

BT - Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Market Reforms?

PB - Macroeconomics

CY - Tilburg

ER -