Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/225071
Authors: 
Sachs, Andreas
Schleer, Frauke
Year of Publication: 
2019
Citation: 
[Journal:] International Economic Journal [ISSN:] 1743-517X [Volume:] 33 [Issue:] 3 [Pages:] 431-454
Abstract: 
Reducing rigidity in labor markets is key to lowering unemployment. Theoretical models suggest that the impact of such reforms depends on the country-specific regulatory framework. We test this hypothesis by estimating the impact of changes in six categories of regulation conditional on the country-specific regulatory environment for 26 OECD countries. We overcome problems of modeling a large set of institutional interdependencies by applying a machine learning type model selection approach. We provide evidence for the existence of higher-order institutional interdependencies. We further document that especially for changes in employment protection and the unemployment benefit system the impact on unemployment is mixed across countries.
Subjects: 
Labor market regulation
unemployment
institutional interdependencies
model selection
heuristic optimization
machine learning
JEL: 
C33
E02
E24
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
Document Version: 
Published Version

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