How do institutions affect structural unemployment in times of crises?

Panoeconomicus

关键词: crisis;    structural unemployment;    institutions;    employment protection legislation;   

DOI  :  10.2298/PAN1204393F

来源: DOAJ

【 摘 要 】

This paper examines the effect of economic crises on structural unemploymentusing an Autoregressive Distributed Lags model and accounting for the role ofinstitutional settings on an unbalanced panel of 30 OECD economies from 1960to 2006. We found that downturns have, on average, a significant positiveimpact on the level of structural unemployment rate. The maximum impactvaries with the severity of the downturn. Institutions (such as employmentprotection legislation, average replacement ratio and product marketregulation) influence both the extent of the initial shock and the adjustmentpattern in the aftermath of an economic downturn.

【 授权许可】

Unknown