Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154737
Authors: 
Adascalitei, Dragos
Pignatti Morano, Clemente
Year of Publication: 
2016
Citation: 
[Journal:] IZA Journal of Labor Policy [ISSN:] 2193-9004 [Volume:] 5 [Year:] 2016 [Issue:] 15 [Pages:] 1-32
Abstract: 
The paper analyses the determinants and short-term effects of labour market reforms, using information from a novel policy compendium that covers 110 developed and developing economies between 2008 and 2014. We find that the approval of reforms is positively associated with the unemployment rate, the simultaneous implementation of fiscal consolidation measures and the presence of a fixed exchange rate regime. Differences in the results are explored by looking at the direction of reforms (i.e. increasing or decreasing legislation), temporal horizon (i.e. temporary or permanent measures) and coverage (i.e. complete or two-tier reforms); while also analysing separately reforms' determinants across domains of labour legislation (e.g. permanent contracts, collective dismissals). Finally, we find that deregulatory labour market reforms tend to increase the unemployment rate in the short run when they are approved during contractionary periods-while they have a non-significant effect when approved during periods of economic stability or expansion.
Subjects: 
Labour market reforms
Employment protection legislation
Unemployment
Developed economies
Developing economies
JEL: 
J20
J52
J38
J48
J58
K31
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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