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Employment to output elasticities and reforms towards flexicurity: Evidence from OECD Countries

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Listed:
  • Holger Gorg
  • Cecilia Hornok
  • Catia Montagna
  • George E. Onwordi

Abstract

Labour market reforms in the direction of 'flexicurity' have been widely endorsed as a means to increasing an economy's ability to adjust to negative shocks while offering adequate social safety nets. This paper empirically examines how such reforms infl uence employment's responsiveness to output fluctuations (employment-output elasticity). To address this question, we employ a panel of OECD countries, which also incorporates the period of the Great Recession, and distinguish between passive and active labour market policy types. We find that the effects of any single policy change are shaped by the broader existing policy-mix within which it takes place.

Suggested Citation

  • Holger Gorg & Cecilia Hornok & Catia Montagna & George E. Onwordi, 2020. "Employment to output elasticities and reforms towards flexicurity: Evidence from OECD Countries," Discussion Papers 2020-24, University of Nottingham, GEP.
    • Handle: RePEc:not:notgep:2020-24
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    Keywords

    employment-output elasticity; labour market policy; welfare state; flexicurity;
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