Labour Market Institutions and the Employment Intensity of Output Growth

2009 ◽  
Vol 229 (1) ◽  
Author(s):  
Gebhard Flaig ◽  
Horst Rottmann
Keyword(s):  
Growth Rate ◽  
Labour Market ◽  
Market Performance ◽  
Oecd Countries ◽  
Output Growth ◽  
Wage Bargaining ◽  
Employment Protection ◽  
Market Institutions ◽  
Labour Market Institutions ◽  
Labour Intensity

SummaryThis paper deals with the effects of labour market institutions on labour market performance. We analyse as an indicator for the labour intensity of output growth the employment threshold (the minimum growth rate of output necessary to keep employment constant). We show for a sample of 17 OECD countries for the period 1971 to 2002 that the strictness of employment protection raises the employment threshold in all econometric specifications. A higher wage bargaining co-ordination and a higher tax wedge reduce also the labour intensity of production, although the effects are not in all econometric specifications significant

scholarly journals Importance of Employment Protection and Types of Employment Contracts for Elasticity of Employment in the OECD Countries

2014 ◽  
Vol 17 (1) ◽  
pp. 21-44
Author(s):  
Eugeniusz Kwiatkowski ◽  
Przemysław Włodarczyk
Keyword(s):  
Labour Market ◽  
Economic Crisis ◽  
Oecd Countries ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Real Wages ◽  
Market Institutions ◽  
Employment Contracts ◽  
Protection Legislation ◽  
The Impact

This article presents the impact of the global crisis on employment in the OECD countries, and in particular is an attempt to explain why the impact is of a different scope in particular countries. Particular attention has been paid to the question of the role played by labour market institutions (such as employment protection legislation and fixed-term employment). The global economic crisis has influenced the situation in the labour markets of OECD countries, causing declines in employment and increases in unemployment. Changes in the level of employment in individual countries varied. Between 2007-2012 declines in production took place in the majority of OECD countries. Declines in real wages were also observed in those countries. On the other hand, in the period of 2005-2012 relatively small changes in labour market institutions occurred. With respect to both the stringency of employment protection legislation, as well as the share of fixed-term employment, there were no clearly visible trends in the data during the period of economic crisis. The econometric verification of theoretical hypotheses was performed using annual data from the 2005-2012 period for 26 OECD countries, and it shows that GDP and real wages were statistically significant determinants of employment size in the analyzed period. The study also confirmed the hypothesis of the existence of a non-linear (U-shaped) relationship between employment elasticity with respect to GDP and the level of stringency of employment protection legislation, as well as the share of fixed-term employment in the total number of employment contracts. The results show that the smallest declines in employment during a crisis might be expected in countries where the level of EPL is close to 2, and the share of fixed-term employment in the total number of employment contracts is close to 18%.

scholarly journals Complementarities between Labour Market Institutions and their Causal Impact on Youth Labour Market Outcomes

2020 ◽  
Vol 20 (3) ◽  
Author(s):  
Niall O’Higgins ◽  
Giovanni Pica
Keyword(s):  
Labour Market ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Policy Reforms ◽  
Market Institutions ◽  
Market Outcomes ◽  
Labour Market Institutions ◽  
Protection Legislation ◽  
Labour Market Outcomes ◽  
The Impact

AbstractWe analyse theoretically and empirically the effects on young people’s labour market outcomes of two specific labour market institutions and their interaction: employment protection legislation and active labour market policy. The paper examines recent policy reforms in Italy focussing on the impact of the 2012 Fornero reforms of employment protection legislation as well as the initial impact of the EU-wide Youth Guarantee scheme introduced in Italy in March 2014. The paper then examines how these two policy reforms interacted. The analysis first confirms the finding that the Fornero reform increased permanent hires particularly amongst the very youngest workers; it then goes on to find that the YG was indeed successful in increasing the hires of young people, although this operated through a statistically significant increase in female hires on temporary contracts. Third, it finds some evidence of a dampening effect of the YG on EPL reforms as predicted by theory.

scholarly journals Wages and productivity: the role of labour market institutions in OECD countries

Empirica ◽  
2006 ◽  
Vol 33 (4) ◽  
pp. 231-243 ◽  
Author(s):  
Juan Carlos Duque ◽  
Raúl Ramos ◽  
Jordi Suriñach
Keyword(s):  
Labour Market ◽  
Oecd Countries ◽  
Market Institutions ◽  
Labour Market Institutions

scholarly journals Transformations of Swedish Labour Market Institutions. Effects on Employees’ Turnover Cognitions

2013 ◽  
pp. 91-120
Author(s):  
Tomas Berglund
Keyword(s):  
Labour Market ◽  
Unemployment Insurance ◽  
Employment Protection ◽  
Employment Protection Legislation ◽  
Market Institutions ◽  
Labour Market Institutions ◽  
Protection Legislation ◽  
Turnover Cognitions

The article studies how changes in 2007 in the Swedish unemployment insurance (UI) have influenced employees’ turnover cognitions. It is argued that the combination of a strict employment protection legislation (EPL) and a generous UI in 2006 made employees more inclined to risky transitions. The post-2007 combination of a strict EPL and an ungenerous UI reinforces non-mobility intentions. Analyses of two surveys show a smaller proportion of employees with turnover cognitions in 2010 than in 2006.

Negotiating wage (in)equality: changing union strategies in high-wage and low-wage sectors in Czechia and Slovakia

2021 ◽  
pp. 102425892199536
Author(s):  
Monika Martišková ◽  
Marta Kahancová ◽  
Jakub Kostolný
Keyword(s):  
Collective Bargaining ◽  
Labour Market ◽  
Wage Inequality ◽  
Trade Unions ◽  
Wage Bargaining ◽  
Minimum Wages ◽  
High Wage ◽  
Market Institutions ◽  
Labour Market Institutions ◽  
The Impact

Reducing wage inequality requires an understanding of the importance of labour market institutions, in particular statutory minimum wages and sectoral collective bargaining. This article argues that the impact of labour market institutions on wage inequality is enhanced by specific strategies of unions and employers. Empirical evidence is provided from the high-wage automotive sector and the low-wage retail sector in Czechia and Slovakia. Against the backdrop of the erosion of collective wage bargaining, trade unions have prioritised increases in the national statutory minimum wage as a mechanism for reducing wage inequalities. Trade unions’ leverage on minimum wages can compensate for their declining influence on wage distribution via collective bargaining.

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