scholarly journals Youth Unemployment in the OECD: The Role of Institutions

2015 ◽  
Vol 235 (4-5) ◽  
pp. 403-417 ◽  
Author(s):  
Andreas Sachs ◽  
Werner Smolny
Keyword(s):  
Labor Market ◽  
Youth Unemployment ◽  
Wage Bargaining ◽  
Employment Protection ◽  
Labor Market Institutions ◽  
Market Institutions ◽  
Older Employees ◽  
High Effect ◽  
Very High

Summary This paper analyzes the role of labor market institutions for youth unemployment, as contrasted to total unemployment. The empirical results are basically consistent with an insider view of labor market institutions. Labor market institutions tend to protect (older) employees but might harm (young) entrants. Remarkable is especially the significant and very high effect of employment protection for regular jobs on youth unemployment. In addition, the combined effects of powerful unions and a coordinated wage bargaining system are beneficial for older people and detrimental to youth. Finally, the paper identifies a significant link between a demographic as well as an educational factor and both youth and total unemployment.

scholarly journals Labor market institutions, the insider/outsider divide and social inequalities in employment in affluent countries

2017 ◽  
Vol 17 (2) ◽  
pp. 255-281 ◽  
Author(s):  
Thomas Biegert
Keyword(s):  
Labor Market ◽  
Social Inequalities ◽  
Age Groups ◽  
Wage Bargaining ◽  
Employment Protection ◽  
Labor Market Institutions ◽  
Significant Heterogeneity ◽  
The European Union ◽  
Market Institutions ◽  
Minimum Income

Abstract This article investigates the role of labor market institutions for social inequalities in employment. To distinguish institutional impacts for men and women, age groups and educational levels the analysis draws on data from 21 countries using the European Union Labor Force Survey and the Current Population Survey 1992–2012. The analysis demonstrates that there is significant heterogeneity in the relationship between institutions and employment across social groups. In line with the literature on dualization, institutions that arguably protect labor market insiders, i.e. employment protection, unionization and unemployment benefits, are frequently associated with greater inequality between typically disadvantaged groups and their insider peers. By contrast, institutions that discriminate less between insiders and outsiders, i.e. active labor market policies, minimum income benefits and centralized wage bargaining at times boost social equality on the labor market. The insider/outsider argument provides a valuable heuristic for assessing heterogeneity in institutional impacts, yet in several instances the results deviate from the expectations.

scholarly journals The Transition to the Knowledge Economy, Labor Market Institutions, and Income Inequality in Advanced Democracies

2019 ◽  
Vol 71 (2) ◽  
pp. 236-288 ◽  
Author(s):  
David Hope ◽  
Angelo Martelli
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Knowledge Economy ◽  
Industrial Relations ◽  
Wage Bargaining ◽  
Employment Protection ◽  
Empirical Literature ◽  
Labor Market Institutions ◽  
Market Institutions ◽  
Advanced Democracies

AbstractThe transition from Fordism to the knowledge economy in the world’s advanced democracies was underpinned by the revolution in information and communications technology (ict). The introduction and rapid diffusion of ict pushed up wages for college-educated workers with complementary skills and allowed top managers and CEOs to reap greater rewards for their own talents. Despite these common pressures, income inequality did not rise to the same extent everywhere; income in the Anglo-Saxon countries remains particularly unequally distributed. To shed new light on this puzzle, the authors carry out a panel data analysis of eighteen oecd countries between 1970 and 2007. Their analysis stands apart from the existing empirical literature by taking a comparative perspective. The article examines the extent to which the relationship between the knowledge economy and income inequality is influenced by national labor market institutions. The authors find that the expansion of knowledge employment is positively associated with both the 90/10 wage ratio and the income share of the top 1 percent, but that these effects are mitigated by the presence of strong labor market institutions, such as coordinated wage bargaining, strict employment protection legislation, high union density, and high collective bargaining coverage. The authors provide robust evidence against the argument that industrial relations systems are no longer important safeguards of wage solidarity in the knowledge economy.

scholarly journals Impacts of Labor Market Institutions and Demographic Factors on Labor Markets in Latin America

2019 ◽  
Vol 19 (155) ◽  
Author(s):  
Adriana Kugler
Keyword(s):  
Labor Market ◽  
Latin American ◽  
Older Workers ◽  
Market Performance ◽  
Demographic Factors ◽  
Employment Protection ◽  
Labor Market Institutions ◽  
Market Institutions ◽  
Payroll Taxes ◽  
The Impact

This paper documents recent labor market performance in the Latin American region. The paper shows that unemployment, informality, and inequality have been falling over the past two decades, though still remain high. By contrast, productivity has remained stubbornly low. The paper, then, turns to the potential impacts of various labor market institutions, including employment protection legislation (EPL), minimum wages (MW), payroll taxes, unemployment insurance (UI) and collective bargaining, as well as the impacts of demographic changes on labor market performance. The paper relies on evidence from carefully conducted studies based on micro-data for countries in the region and for other countries with similar income levels to draw conclusions on the impact of labor market institutions and demographic factors on unemployment, informality, inequality and productivity. The decreases in unemployment and informality can be partly explained by the reduced strictness of EPL and payroll taxes, but also by the increased shares of more educated and older workers. By contrast, the fall in inequality starting in 2002 can be explained by a combination of binding MW throughout most of the region and, to a lesser extent, by the introduction of UI systems in some countries and the role of unions in countries with moderate unionization rates. Falling inequality can also be explained by the fall in the returns to skill associated with increased share of more educated and older workers.

Sign in / Sign up

Export Citation Format

Share Document