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Reassessing Labour Market Reforms: A Critique

Author

Listed:
  • Junankar, Pramod N. (Raja)

    (University of New South Wales)

  • Jayanthakumaran, Muhunthan

    (University of New South Wales)

Abstract

This paper provides a critique of Faccini (2014) that allegedly shows that temporary contracts lead to lower unemployment in Europe. Using Faccini's data and his estimation methods, we show that the Fixed Effects estimation results collapse when we make slight alterations in the sample size or the independent variables used. The Arellano-Bond estimates are meaningless since the number of instruments is almost equal to the number of observations. To conclude we find that there is no evidence to support the conclusion that greater use of temporary contracts would decrease unemployment.

Suggested Citation

  • Junankar, Pramod N. (Raja) & Jayanthakumaran, Muhunthan, 2014. "Reassessing Labour Market Reforms: A Critique," IZA Discussion Papers 8385, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8385
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    More about this item

    Keywords

    unemployment; temporary contracts; employment protection;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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