The unemployment effects of labor regulation around the world

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Abstract

Using data on 73 economies for the years 2000 to 2003, this paper empirically analyzes the effects of labor regulation on unemployment around the globe. According to the regression results, stricter regulation generally appears to increase unemployment. Tight hiring and firing rules and military conscription most clearly seem to have adverse effects. More centralized collective bargaining seems to increase female unemployment. The size of most effects appears to be substantial, particularly among young people. However, we do not find statistically significant effects of minimum wages or unemployment benefits. Our results are robust to variations in specification
Original languageEnglish
Pages (from-to)76-90
Number of pages15
JournalJournal of Comparative Economics
Volume37
Issue number1
Early online date14 Oct 2008
DOIs
Publication statusPublished - Mar 2009

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Keywords

  • Collective bargaining
  • Unemployment benefits
  • Minimum wage
  • Hiring and firing regulation
  • Unemployment
  • Military conscription
  • Labor regulation

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