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Labor Market Policies, Institutions and Employment Rates in the EU-27

Author

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  • Rovelli, Riccardo

    (University of Bologna)

  • Bruno, Randolph Luca

    (University College London)

Abstract

We compare labor market policies, institutions and outcomes for the EU member states, for the period 2000-2005. We document the main differences in Labor Market Policies across EU members, including new member states after 2004. We focus on indicators of policy generosity (expenditures relative to GDP) and relate these and other policy indicators to indicators of labor market outcomes and performance. Our results show that, on a cross-country basis, higher rates of employment are in general associated with: (i) higher expenditures on labor market policies, especially on active policies for countries with a high pro-work attitude; (ii) a lower degree of rigidity in labor market institutions and in product market regulation.

Suggested Citation

  • Rovelli, Riccardo & Bruno, Randolph Luca, 2008. "Labor Market Policies, Institutions and Employment Rates in the EU-27," IZA Discussion Papers 3502, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3502
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    References listed on IDEAS

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    5. Howell David R. & Baker Dean & Glyn Andrew & Schmitt John, 2007. "Are Protective Labor Market Institutions at the Root of Unemployment? A Critical Review of the Evidence," Capitalism and Society, De Gruyter, vol. 2(1), pages 1-73, May.
    6. Stephen Nickell & Luca Nunziata & Wolfgang Ochel, 2005. "Unemployment in the OECD Since the 1960s. What Do We Know?," Economic Journal, Royal Economic Society, vol. 115(500), pages 1-27, January.
    7. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Social, Employment and Migration Working Papers 35, OECD Publishing.
    8. Giuseppe Nicoletti & Stefano Scarpetta, 2005. "Regulation and Economic Performance: Product Market Reforms and Productivity in the OECD," OECD Economics Department Working Papers 460, OECD Publishing.
    9. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection Discussion Papers and Notes 29142, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Klebolte, Kimberly, 2021. "Employment Protection Legislation, Youth Unemployment and the Role of the Educational System," Junior Management Science (JUMS), Junior Management Science e. V., vol. 6(1), pages 60-80.
    2. Randolph L. Bruno & Riccardo Rovelli, 2010. "Labour Market Policies and Outcomes in the Enlarged EU," Journal of Common Market Studies, Wiley Blackwell, vol. 48(3), pages 661-685, June.
    3. Brancaccio, Emiliano & Garbellini, Nadia & Giammetti, Raffaele, 2018. "Structural labour market reforms, GDP growth and the functional distribution of income," Structural Change and Economic Dynamics, Elsevier, vol. 44(C), pages 34-45.
    4. Beata Bieszk-Stolorz & Krzysztof Dmytrów, 2020. "Influence of Accession of the Visegrad Group Countries to the EU on the Situation in Their Labour Markets," Sustainability, MDPI, vol. 12(16), pages 1-16, August.
    5. repec:bla:jcmkts:v:48:y:2010:i::p:661-685 is not listed on IDEAS
    6. Susan Averett & Laura Argys & Jennifer Kohn, 2012. "Immigration, obesity and labor market outcomes in the UK," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-19, December.
    7. Marwa Sahnoun & Chokri Abdennadher, 2018. "The assessment of active labor market policies: evidence from OECD countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 257-283, August.
    8. Hila Axelrad & Erika L. Sabbath & Summer Sherburne Hawkins, 2018. "The 2008–2009 Great Recession and employment outcomes among older workers," European Journal of Ageing, Springer, vol. 15(1), pages 35-45, March.
    9. Per Skedinger, 2010. "Employment Protection Legislation," Books, Edward Elgar Publishing, number 13686.
    10. Gratiela Georgiana Carica, 2011. "A Framework Analysis Of European Labour Market Policies," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3(1), pages 13-21, March.
    11. Gina Cristina Dimian & Bogdan Ileanu & Josef Jablonský & Jan Fábry, 2013. "Analysis of European Labour Market in the Crisis Context," Prague Economic Papers, Prague University of Economics and Business, vol. 2013(1), pages 50-71.

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    More about this item

    Keywords

    labor market policies; labor market outcomes; European social models;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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