Cover IMF Working Papers
Buy Book in Print
Labor Market Flexibility and Unemployment: New Empirical Evidence of Static and Dynamic Effects
Author:
Mr. Lorenzo E. Bernal-Verdugo null

Search for other papers by Mr. Lorenzo E. Bernal-Verdugo in
Current site
Google Scholar Close
,
Davide Furceri null

Search for other papers by Davide Furceri in
Current site
Google Scholar Close
, and
Mr. Dominique M. Guillaume
Search for other papers by Mr. Dominique M. Guillaume in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2012: Issue 064
Language:
English
Publication Date:
01 Mar 2012
DOI:
https://doi.org/10.5089/9781463938413.001
ISBN:
9781463938413
ISSN:
1018-5941
Pages:
28
Keywords:
WP; unemployment outcome; flexibility indicator
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.2 MB) Download Epub
The aim of this paper is to analyze the relationship between labor market flexibility and unemployment outcomes. Using a panel of 97 countries from 1985 to 2008, the results of the paper suggest that improvements in labor market flexibility have a statistically and significant negative impact on unemployment outcomes (over unemployment, youth unemployment and long-term unemployment). Among the different labor market flexibility indicators analyzed, hiring and firing regulations and hiring costs are found to have the strongest effect.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund