Labor Market Institutions and Unemployment Dynamics in Transition Economies

Job Turnover, Unemployment and Labor Market Institutions

This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows. We construct an intertemporal general equilibrium model with search unemployment and endogenous job turnover, and examine the consequences of introducing an unemployment benefit, a firing cost and a downward wage rigidity. The model is able to reproduce the main cyclical propert...

Offshoring, unemployment, and wages: The role of labor market institutions

a r t i c l e i n f o It is shown that when wages are determined through collective bargaining, there is a non-monotonic relationship between the cost of offshoring and unemployment. Starting from a high cost of offshoring, a decrease in the cost of offshoring reduces unemployment first and then increases it. The non-monotonicity of unemployment in the cost of offshoring does not obtain if wage...

Labor Market Institutions and Long-Term Effects of Youth Unemployment

Labor Market Institutions and Long-Term Effects of Youth Unemployment Graduating from a school during a time of adverse economic conditions has a persistent, harmful effect on workers’ subsequent employment opportunities. An analysis of panel data from OECD countries during the 1960-2010 periods reveals that a worker who experiences a one-percentage-point higher unemployment rate while the work...

Wage Compression and the Unemployment Crisis: Labor Market Institutions, Skills, and Inequality-Unemployment Tradeoffs

How Important Are Labor Market Institutions for Labor Market Performance in Transition Countries?

How Important Are Labor Market Institutions for Labor Market Performance in Transition Countries? This paper offers a first comprehensive study of the relationship between labor market institutions and policies and labor market performance in the countries of Eastern Europe and Central Asia, which in the last two decades experienced radical economic and institutional transformations. Based on a...