Unemployment in an Interdependent World

How do changes in labor market institutions, like more generous unemployment benefits in one country, affect labor market outcomes in other countries? We set up a two-country Armingtonian trade model with frictions on the goods and labor markets. Contrary to the literature, higher labor market frictions increase unemployment at home and abroad. The strength of the spillover depends on the relative size of countries and on trade costs. It is exacerbated when real wages are rigid. Using panel data for 20 rich OECD countries, and controlling for institutions as well as for business cycle comovement, we confirm our theoretical predictions. (JEL E24, F16, J64, J65)

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Shortening the Potential Duration of Unemployment Benefits and Labor Market Outcomes: Evidence from a Natural Experiment in Germany

SSRN Electronic Journal ◽

10.2139/ssrn.3117304 ◽

2018 ◽

Author(s):

Inna Petrunyk ◽

Christian Pfeifer

Keyword(s):

Labor Market ◽

Natural Experiment ◽

Labor Market Outcomes ◽

Unemployment Benefits ◽

Market Outcomes ◽

Duration Of Unemployment

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How Does the Interplay of Labor Market Institutions and Mismatch Affect Labor Market Outcomes?: An Empirical Analysis of 24 Countries Using PIAAC Data

Korea Social Policy Review ◽

10.17000/kspr.21.4.201412.103 ◽

2014 ◽

Vol 21 (4) ◽

pp. 103-136 ◽

Cited By ~ 3

Author(s):

류기락

Keyword(s):

Labor Market ◽

Empirical Analysis ◽

Labor Market Outcomes ◽

Labor Market Institutions ◽

Market Institutions ◽

Market Outcomes

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Does an Introduction of a Paid Parental Leave Policy Affect Maternal Labor Market Outcomes in the Short Run? Evidence from Australia’s Paid Parental Leave Scheme

IZA Journal of Labor Policy ◽

10.2478/izajolp-2020-0004 ◽

2020 ◽

Vol 10 (1) ◽

Author(s):

Brittany Bass

Keyword(s):

Labor Market ◽

Parental Leave ◽

Labor Market Outcomes ◽

Market Outcomes ◽

Employment Transitions ◽

Theoretical Predictions ◽

Leave Policy ◽

Short Run ◽

Paid Parental Leave ◽

Theoretical Results

AbstractThis paper studies how an introduction of paid parental leave (PPL) affects maternal labor market outcomes in the short run. Using a reform in Australia, the PPL scheme, that gave the primary caregiver of a child born or adopted on or after January 1 2011, $672.70 a week for a maximum of 18 weeks, this paper develops theoretical predictions of the effect of PPL on maternal labor market outcomes, and tests these predictions using confidential data from the Australian Pregnancy and Employment Transitions Survey. The theoretical results imply that after the introduction of PPL, hours of work in the pre-birth period should decrease for mothers who will qualify for PPL, and increase for mothers who are attempting to qualify for PPL. Post birth, the theoretical results imply that more mothers are out of work and on leave than would have been in the absence of PPL. The empirical results suggest that the PPL scheme had no significant effect on labor market outcomes pre birth or post birth.

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Explaining the labor market gaps between immigrants and natives in the OECD

MIGRATION LETTERS ◽

10.33182/ml.v14i2.330 ◽

2017 ◽

Vol 14 (2) ◽

pp. 251-262

Author(s):

Andreas Bergh

Keyword(s):

Labor Market ◽

Bayesian Model Averaging ◽

Labor Market Outcomes ◽

Model Averaging ◽

Oecd Countries ◽

Economic Benefits ◽

Labor Market Institutions ◽

Market Institutions ◽

Market Outcomes ◽

Native Workers

In most OECD-countries immigrants have lower employment and higher unemployment than natives. The gap in labor market outcomes is larger in countries with more immigrant friendly attitudes. This paper suggests that in countries where labor market institutions are less competitive, native workers face less direct wage competition from immigration. As a result, the general population is more immigrant-friendly and income inequality is dampened. On the other hand, employment among immigrants suffers, thwarting the potential economic benefits from immigration. Empirical analysis of 19–28 OECD countries using Bayesian model averaging to cope with the model selection problem, provide support for the relevance of labor market institutions against other plausible explanations of immigrant labor market outcomes. In particular, the unemployment gap is bigger in countries where collective bargaining agreements cover a larger share of the labor market.

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