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The Determinants of Labor Market Institutions: A Panel Data Study

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  • Kim, Jaewon

    (Dept. of Economics, Stockholm University)

Abstract

This paper analyzes the argument that labor market institutions can be thought of devices for social insurance. It investigates the hypotheses that a country’s exposure to external risk and ethnic fractionalization are correlated with labor market institutions. Extreme bounds analysis with the panel data of 40 years indicates that there is no robust evidence of positive correlation between external risk and the structure of labor market institutions, while ethnic fractionalization is robust negatively correlated with the institutions.

Suggested Citation

  • Kim, Jaewon, 2006. "The Determinants of Labor Market Institutions: A Panel Data Study," Research Papers in Economics 2006:10, Stockholm University, Department of Economics, revised 06 Dec 2006.
    • Handle: RePEc:hhs:sunrpe:2006_0010
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    File URL: http://www2.ne.su.se/paper/wp06_10revised.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    labor market institutions; external risk; ethnic fractionalization; extreme bounds analysis;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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