Work

Labor Market Institutions and Macroeconomic Volatility in a Panel of Oecd Countries

Year: 2011

Type: article

Abstract: ABSTRACT In this paper we analyze empirically how labor market institutions influence business cycle volatility in a sample of 20 OECD countries. Our results suggest that countries characterized by high union density tend to experience more volatile movements in output, whereas the degree of coordination of the wage bargaining system and the strictness of employment protection legislation appear to be only of limited importance. We also find some evidence suggesting that highly coordinated wage bargaining systems have a dampening impact on inflation volatility.

Source: Scottish Journal of Political Economy

DOI: 10.1111/j.1467-9485.2011.00552.x

Authors: Fabio Rumler, Johann Scharler

Institutions: National Bank of Austria, Johannes Kepler University of Linz

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: bronze

Funder: Oesterreichische Nationalbank