Template-type: ReDIF-Paper 1.0
Author-Name: Luca Nunziata
Author-Email: luca.nunziata@nuffield.ox.ac.uk
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Author-Workplace-Name:Nuffield College, Oxford
Author-Workplace-Homepage:http://www.nuff.ox.ac.uk/
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Title: Unemployment, Labour Market Institutions and Shocks
Abstract:
  This paper aims to explain the cross sectional differences in,
  and the time series evolution of, OECD unemployment from 1960 to
  1995. We want to know how much of it can be accounted for by changes
  in labour market institutions, and the interactions of institutions
  and macroeconomic shocks. Our aim is also to verify the consistency
  of unemployment fluctuations with the labour cost results presented
  in Nunziata (2001). Our findings suggest that labour market
  institutions have a direct significant impact on unemployment in a
  fashion that is broadly consistent with their impact on real labour
  costs. Broad movements in unemployment across the OECD can be explained
  by shifts in labour market institutions, although this explanation
  relies on high levels of endogenous persistence. We cannot rule out a
  significant role for institutions through their interaction with adverse
  shocks, although the estimates do not appear extremely robust in this case.
  In contrast, the direct effect of institutions still holds when we include
  the possibility of interactions between shocks and institutions.
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Length:40 pages
Creation-Date: 2002-06-11
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Number:2002-W16
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File-URL:http://www.nuff.ox.ac.uk/economics/papers/2002/w16/p4unemploymentWP.pdf
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Handle: RePEc:nuf:econwp:0216