Effects of macroeconomic and institutional variables on unemployment: The European case (1985-2011)
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Copyright (c) 2017 Semestre Económico Universidad de Medellín
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Published: March 1, 2017
Abstract
This paper evaluates the influence that macroeconomic and institutional variables have on the unemployment rate in 14 countries within the European Union. A panel data model is used for the 1985-2011-time period. The model allows concluding which macroeconomic and institutional variables could be more effective for improving the labor market response when facing economic difficulties. It can be concluded then that excessive protection for workers, inter-professional minimum salary wage, as well as a low competition in the product market, can partially explain the higher unemployment rates found in several countries of the European Union.
References
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Ours, J. y Vodopivec, M. (2008). Does Reducing Unemployment Insurance Generosity Reduce Job Match Quality? En: Journal of Public Economics, Vol. 92, No 3-4, p. 684-395.
Ours, J. y Vodopivec, M. (2006). How Shortening the Potential Duration of Unemployment Benefits Affects the Duration of Unemployment: Evidence from a Natural Experiment. En: Journal of Labor Economics, Vol. 24, No 2, p. 351-378.
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Scarpetta, S. (1996). Assessing the Role of Labour Market Policies and Institutional Settings on Unemployment: a Cross-Country Study. En: OECD Economic Studies, No. 26, p. 43-98.
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Addison, J. T. y Portugal, P. (2008). How to Different Entitlements to Unemployment Benefits Affect the Transitions from Unemployment into Employment? En: Economics Letters Vol. 101, No.3, p. 206-209.
Álvarez-Martínez, M.T. y Polo, C., (2014). Reduce Social Security Contributions and Control Labour Fraud: Spain’s Ailing Economy. En: Economic Systems Research, Vol. 26, No 2, p. 141-153.
Andersen, T. y Svarer, M. (2010). Do Temporary Help Jobs Improve Labour Market outcomes for Low-Skilled Workers? Evidence from Work First. En: American Economic Journal: Applied Economics, Vol 2, Nº 3, p. 96-128.
Andrés, J. y Doménech, R. (2015). En busca de la prosperidad. Capítulo 2: Más y mejor empleos, Editorial Deusto, Madrid, España, noviembre, 384p.
Barbanchon, T. (2012). The Effect of the Potential Duration of Unemployment Benefits on Unemployment Exists to Work and Match Quality in France. En: Centre de Rechercheen Économieset Statistique Série des Documents de Travail No 2012-21, France, 52p.
Belot, M. y van Ours, J. (2001). Unemployment and Labour Market Institutions; an Empirical Analysis. En: Journal of the Japanese and International Economies Vol. 15, No 4, p. 403-418.
Blanchard, O. y Giavazzi, F. (2003). Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets. En: Quarterly Journal of Economics Vol. 118, No. 3, p. 879-907.
Blanchard, O.;Joumotte, F. y Loungani, P. (2013). Labor Market Policies and IMF Advice in Advanced Economies During the Great Recession. En: IMF Staff Discussion Note, SDN/13/02, 2013. 30p.
Boscá, J. E.; Doménech, R. y Ferri, J. (2013). Fiscal Devaluation in EMU. En: BBVA Research Working Paper, No 12/11, Madrid, 38p.
Cacciatore, M.; Duval, R.; Fiori, G. y Ghironi, F. (2016). Short-Term Pain for Long-Term Gain: Market Deregulation and Monetary Policy in Small Open Economies. En: Journal of International Money and Finance, Vol. 68, noviembre, p 358-385.
Caliendo, M.; Tatsiramos, K. y Uhlendorff, A. (2009).Benefit Duration, Unemployment Duration and Job Match Quality: A Regression-discontinuity Approach. En: IZA Discussion Paper No 4670, 37p.
Calmfors, L.; Forslund, A. y Hemström, M. (2004): The Effects of Active Labour Market Policies in Sweden: What is the Evidence? En: Agell, J., Keen, M. and Weichenrieder, A., Labour Market Institutions and Public Regulations, Ed. MIT Press, Cambridge, 62p.
Card, D. y Krueger, A. (1995). Myth and Measurement: the New Economics of the Minimum Wage, Ed. Princeton University Press, New Jersey, 422p.
Cohen, D. y Leker, L. (2014).Health and Education: Another Look with the Proper Data. mimeo, 25p.
Cohen, D. y Soto, M. (2007).Growth and human capital: good data, good results. En: Journal of Economic Growth Vol. 12, No 1, p. 51-76.
Conway, P. y Nicoletti, G. (2006). Product Market Regulation in the Non- manufacturing Sectors of OECD Countries: Measurement and Highlights. En: Working Paper No 58, Economics Department OECD, 64p.
Daveri, F. y Tabellini, G. (2000).Unemployment, Growth and Taxation in Industrial Countries. En: Economic Policy Vol.15, No 30, p. 47-104.
Dolado, J.; Kramarz, F.; Machin, S.; Manning, A.; Margolis, B. y Teulings, C. (1996). The Economic Impact of Minimum Wages in Europe. En: Economic Policy Vol.11, No.23, p. 317-373.
Elmeskov, J.; Martin, J. P. Y Scarpetta, S. (1998). Key Lessons for Labour Market Reforms: Evidence from OECD Countries’ Experiences. En: Swedish Economic Policy Review Vol. 5, No 2, p. 205-252.
Farber, H. S. y Valletta, R. G. (2013). Do Extended Unemployment Benefits Lengthen Unemployment Spells? Evidence from Recent Cycles in the U.S. Labor Market. En: Federal Reserve Bank of San Francisco Working Paper, No 2013-09, 43p.
Hagedor, M.; Karahan, F.; Manovskii, I. y Mitman, K. (2013). Unemployment benefits and unemployment in the Great Recession: The role of Macro effects. En: Federal Reserve Bank of New York Staff Report, No 646, 77p.
Heitger, B. (2002). The impact of Taxation on Unemployment in OECD Countries. En: Cato Journal, Vol. 22, No. 2, p. 333-354.
Jaumotte, F. (2011). The Spanish labor market in a cross-country perspective. En: IMF Working paper, No. 11/11, Washington, 52p.
Judson, R. A. y Owen, A. L. (1999). Estimating dynamic panel data models: a guide for macroeconomists, En: Economic Letters, Vol. 65, No 1, p. 9-15.
Koske, I. (2013). Fiscal Devaluation: Can it Help to Boost Competitiveness? En: OECD Economic Department Working Paper, No.1089, Paris, 16p.
Kratena, K. y Sommer, M. (2014). Labour market policy and environmental fiscal devaluation: a cure for Spain in the aftermath of the great recession? En: WIFO Working paper, No. 476/2014, Viena, 56p.
Lalive, R. y Zweimuller, J. (2004). Benefit Entitlement and Unemployment Duration: The Role of Policy Endogeneity. En: Journal of Public Economic Vol. 88, No 12, p. 2587-2616.
Lalive, R.; van Ours, J. y Zweimuller, J. (2006). How Changes in Financial Incentives Affect the Duration of Unemployment. En: Review of Economics Studies, Vol. 73, No 4, p. 1009-1038.
Layard, R.; Nickell, S. y Jackman, R. (1991). Unemployment: Macroeconomic Performance and the Labour Market, Ed. Oxford University Press, London, 623p.
Martin, J. y Grubb, D. (2001). What Works and for Whom: a Review of OECD Countries’ Experiences with Active Labour Market Policies, En: Swedish Economic Review, Vol. 8, No 2, p. 9-56.
Melguizo, A. y González-Páramo, J. M. (2013). Who bears labour taxes and social contributions. En: SERIEs Spanish Economic Association, Vol. 4, No. 3, p. 247-271.
Mooij, R. y Keen, M. (2012). Fiscal Devaluation and Fiscal Consolidation: The VAT in troubled times, En: IMF Working Paper No. 12/85, Washington, 48p.
Nickell, S. J. (2006). The CEP-OECD Institutions Dataset (1960-2004). CEP Discussion Paper No. 759, CEP-LSE, 22p.
Nickell, S. (1997). Unemployment and Labour Market Rigidities: Europe versus North America. En: Journal of Economic Perspectives Vol. 11, No. 3, p 55-74.
Nickell, S. J. y Nunziata, L. (2001). Labour Market Institutions Database, versión 2.00, 1960-1995, CEP-LSE.
Ochel, W., (2001). Collective bargaining coverage in the OECD from 1960,s to the 1990s. En: CESIfo Forum, Vol.2, No. 4, p 62-65.
Ours, J. y Vodopivec, M. (2008). Does Reducing Unemployment Insurance Generosity Reduce Job Match Quality? En: Journal of Public Economics, Vol. 92, No 3-4, p. 684-395.
Ours, J. y Vodopivec, M. (2006). How Shortening the Potential Duration of Unemployment Benefits Affects the Duration of Unemployment: Evidence from a Natural Experiment. En: Journal of Labor Economics, Vol. 24, No 2, p. 351-378.
Pampillón Olmedo, R. y Mingorance Arnáiz, A. C. (2014). La lucha contra el paro. Una perspectiva internacional, p. 43-66. En: Marín, M. (Dir) y Bote, V. (Coodir.). Reflexiones sobre el mercado de trabajo: continuar la reforma. Ed. Fundación para el análisis y los estudios sociales (FAES), Madrid, 228p.
Pérez, E. y Yao, Y. (2012). Can Institutional Reform Reduce Job Destruction and Unemployment Duration? Yes it Can. En: IMF Working Paper, No. 12/54, Washington, 25p.
Scarpetta, S. (1996). Assessing the Role of Labour Market Policies and Institutional Settings on Unemployment: a Cross-Country Study. En: OECD Economic Studies, No. 26, p. 43-98.
Scruggs, L.; Jahn, D. y Kuitto, K. (2013). Comparative Welfare Entitlements Dataset, versión 2013-08, base de datos. Disponible en web (http://cwed2.org/).
Visser, J. (2013). ICTWSS Database, Database on Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts in 34 countries between 1960 and 2011, versión 4.00, Ed. Institute for Advanced Labour Studies, AIAS, University of Amsterdam, Amsterdam.
How to Cite
Mingorance-Arnáiz, A. C., Calvo-Bernardino, A., & Barruso-Castillo, B. (2017). Effects of macroeconomic and institutional variables on unemployment: The European case (1985-2011). Semestre Económico, 20(42), 17-45. https://doi.org/10.22395/seec.v20n42a1
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