scholarly journals Studying Labor Market Institutions in the Lab: Minimum Wages, Employment Protection and Workfare

2006 ◽  
Author(s):  
Armin Falk ◽  
David Huffman
2019 ◽  
Vol 19 (155) ◽  
Author(s):  
Adriana Kugler

This paper documents recent labor market performance in the Latin American region. The paper shows that unemployment, informality, and inequality have been falling over the past two decades, though still remain high. By contrast, productivity has remained stubbornly low. The paper, then, turns to the potential impacts of various labor market institutions, including employment protection legislation (EPL), minimum wages (MW), payroll taxes, unemployment insurance (UI) and collective bargaining, as well as the impacts of demographic changes on labor market performance. The paper relies on evidence from carefully conducted studies based on micro-data for countries in the region and for other countries with similar income levels to draw conclusions on the impact of labor market institutions and demographic factors on unemployment, informality, inequality and productivity. The decreases in unemployment and informality can be partly explained by the reduced strictness of EPL and payroll taxes, but also by the increased shares of more educated and older workers. By contrast, the fall in inequality starting in 2002 can be explained by a combination of binding MW throughout most of the region and, to a lesser extent, by the introduction of UI systems in some countries and the role of unions in countries with moderate unionization rates. Falling inequality can also be explained by the fall in the returns to skill associated with increased share of more educated and older workers.


2015 ◽  
Vol 235 (4-5) ◽  
pp. 403-417 ◽  
Author(s):  
Andreas Sachs ◽  
Werner Smolny

Summary This paper analyzes the role of labor market institutions for youth unemployment, as contrasted to total unemployment. The empirical results are basically consistent with an insider view of labor market institutions. Labor market institutions tend to protect (older) employees but might harm (young) entrants. Remarkable is especially the significant and very high effect of employment protection for regular jobs on youth unemployment. In addition, the combined effects of powerful unions and a coordinated wage bargaining system are beneficial for older people and detrimental to youth. Finally, the paper identifies a significant link between a demographic as well as an educational factor and both youth and total unemployment.


2017 ◽  
Vol 17 (2) ◽  
pp. 255-281 ◽  
Author(s):  
Thomas Biegert

Abstract This article investigates the role of labor market institutions for social inequalities in employment. To distinguish institutional impacts for men and women, age groups and educational levels the analysis draws on data from 21 countries using the European Union Labor Force Survey and the Current Population Survey 1992–2012. The analysis demonstrates that there is significant heterogeneity in the relationship between institutions and employment across social groups. In line with the literature on dualization, institutions that arguably protect labor market insiders, i.e. employment protection, unionization and unemployment benefits, are frequently associated with greater inequality between typically disadvantaged groups and their insider peers. By contrast, institutions that discriminate less between insiders and outsiders, i.e. active labor market policies, minimum income benefits and centralized wage bargaining at times boost social equality on the labor market. The insider/outsider argument provides a valuable heuristic for assessing heterogeneity in institutional impacts, yet in several instances the results deviate from the expectations.


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