How does finance affect labor market institutions? An empirical analysis in 16 OECD countries

2015 ◽  
Vol 13 (3) ◽  
pp. 477-504 ◽  
Author(s):  
Thibault Darcillon
Keyword(s):  
Labor Market ◽  
Empirical Analysis ◽  
Oecd Countries ◽  
Labor Market Institutions ◽  
Market Institutions

REDUCING INCOME INEQUALITY WHILE BOOSTING ECONOMIC GROWTH: CAN IT BE DONE? EVIDENCE FROM OECD COUNTRIES

2014 ◽  
Vol 59 (01) ◽  
pp. 1450001 ◽  
Author(s):  
PETER HOELLER ◽  
ISABELLE JOUMARD ◽  
ISABELL KOSKE
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
Income Inequality ◽  
Oecd Countries ◽  
Gdp Per Capita ◽  
Labor Market Institutions ◽  
Policy Reforms ◽  
Market Institutions ◽  
Trade Off ◽  
Per Capita

This paper identifies inequality patterns across Organisation for Economic Co-operation and Development (OECD) countries and provides new analysis of their policy and non-policy drivers. One key finding is that education and anti-discrimination policies, well-designed labor market institutions and large and/or progressive tax and transfer systems can all reduce income inequality. On this basis, the paper identifies several policy reforms that could yield a double dividend in terms of boosting GDP per capita and reducing income inequality, and also flags other policy areas where reforms would entail a trade-off between both objectives.

Explaining the labor market gaps between immigrants and natives in the OECD

2017 ◽  
Vol 14 (2) ◽  
pp. 251-262
Author(s):  
Andreas Bergh
Keyword(s):  
Labor Market ◽  
Bayesian Model Averaging ◽  
Labor Market Outcomes ◽  
Model Averaging ◽  
Oecd Countries ◽  
Economic Benefits ◽  
Labor Market Institutions ◽  
Market Institutions ◽  
Market Outcomes ◽  
Native Workers

In most OECD-countries immigrants have lower employment and higher unemployment than natives. The gap in labor market outcomes is larger in countries with more immigrant friendly attitudes. This paper suggests that in countries where labor market institutions are less competitive, native workers face less direct wage competition from immigration. As a result, the general population is more immigrant-friendly and income inequality is dampened. On the other hand, employment among immigrants suffers, thwarting the potential economic benefits from immigration. Empirical analysis of 19–28 OECD countries using Bayesian model averaging to cope with the model selection problem, provide support for the relevance of labor market institutions against other plausible explanations of immigrant labor market outcomes. In particular, the unemployment gap is bigger in countries where collective bargaining agreements cover a larger share of the labor market.

scholarly journals Cultural, political and economic roots of the labor market institutional framework in the OECD and post-socialist countries

Equilibrium ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 713-731 ◽  
Author(s):  
Michał Pilc
Keyword(s):  
Labor Market ◽  
Oecd Countries ◽  
Efficiency Index ◽  
Institutional Framework ◽  
Labor Market Institutions ◽  
Economic Factors ◽  
Employment Rate ◽  
Market Institutions ◽  
Political Factors ◽  
Chow Test

Research background: The literature indicates that labor market institutions are determined by cultural, political and economic factors, but does not give explicit conclusions which of these vast group of factors dominates. Purpose of the article: The goal of this study is to empirically assess whether cultural and political factors dominate over economic factors in shaping the labor market institutional framework in the OECD and post-socialist countries. Methods: This framework can be measured by a vast group of indicators. We use 10 such variables that describe the group of 47 post-socialist and OECD countries (that did not experience economic transition) in the years 2005–2009. These indicators allow to construct one Employment Efficiency Index which explains almost 47% of the employment rate heterogeneity in the years 2010–2015. In the second step, the Employment Efficiency Index is regressed on 7 uncorrelated and standardized components that describe the cultural, political and economic characteristics of the analyzed countries in the years 1995–2004 and the Chow test is conducted in order to determine whether they influence the Index with the same strength in post-socialist and non-transition OECD countries. Findings & Value added: The obtained results show that cultural and political factors have a stronger influence on labor market institutions. Moreover, the estimates reveal that the countries which experienced weak labor market performance in the period 1995–2004 did not make their institutional framework more pro-employment in the following years and, in consequence, also recorded low values of the employment rate in the period 2010–2015. Such result suggests that economic factors occurred to be on average an insufficient trigger for labor market reforms in the group of analyzed countries. Finally, the Chow test revealed that this conclusion is applicable to both post-socialist and non-transition OECD countries.

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