The aim of this technical note is toshed some light on relationship between labor marketinstitutions and labor market outcomes in the member statesof the Organization of Economic Cooperation and Development(OECD) in North America and East Asia; the New Member Statesof the European Union who are not members of the OECD (e.g.the Baltic states); countries in the European “Neighborhood”with aspire to accede to the EU (e.g. countries in theWestern Balkans); and other European transitions countries(e.g. Ukraine, Moldova, and the Caucasus). Severalestimation approaches for different data samples andexplanatory variables were used to analyze the impact oflabor market institutions on the labor market outcomes inEuropean and OECD countries. This technical note,nevertheless, analyzes the impact of labor marketinstitutions in above-mentioned regions and finds that theydo affect major labor market indicators. The results showthat the minimum wage tends to increase unemployment innon-European OECD sample, which is in accordance with thetext-book pricing out effect. To examine the potentialdifferences in the role of explanatory variables between thetwo OECD sub-samples the author applied modified Chowtests.The results of applied Chow tests examining thepotential differences in the role of explanatory variablesbetween the particular sub-samples are inconclusive.Generally, the author was not able to reject the hypothesisof stability of regression coefficients between the examinedgroups of countries in all tested models. While some of theestimated coefficients suggest different behavior, theavailable data did not allow to study this issue in detail.
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