Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/40159
Authors: 
Sachs, Andreas
Year of Publication: 
2010
Series/Report no.: 
ZEW Discussion Papers 10-058
Abstract: 
Labor and product market regulations affect the unemployment rate of a country without doubt. Econometricians, however, have yet to establish an unequivocal significance of this impact. Model mis-specification, one of the main underlying problems, is overcome by adopting a Bayesian Model Averaging approach. I apply this method to a panel data set that covers 17 OECD countries for the time period from 1982 to 2005 and for up to 20 potential explanatory variables. 8 institutional indicators are identified as significant determinants of unemployment. Endogeneity due to reverse causality is also considered by applying an instrumental variable estimation approach.
Subjects: 
unemployment
institutions
labor and product markets
model averaging
JEL: 
C33
E02
E24
Document Type: 
Working Paper

Files in This Item:
File
Size
282.81 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.