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The impact of increasing labour market rigidity on employment growth in OECD countries

Bibliographic Details
Main Author: Wiese, Rasmus
Publication Date: 2025
Other Authors: Jalles, João Tovar, de Haan, Jakob
Format: Article
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: http://hdl.handle.net/10362/182069
Summary: Publisher Copyright: © 2025 The Author(s).
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spelling The impact of increasing labour market rigidity on employment growth in OECD countriesEmploymentLabour market counter-reformsLocal projectionsNonlinearitiesSDG 8 - Decent Work and Economic GrowthPublisher Copyright: © 2025 The Author(s).This paper examines how labour market counter-reforms, i.e., measures that make it more difficult to hire and fire workers and that increase unemployment benefits, affect employment growth in 25 OECD countries. Although counter-reforms occur frequently, they have received little attention in empirical research. The theoretical effects of labour market counter-reforms on employment are ambiguous. For instance, higher firing costs may decrease employment as employers are less willing to hire. However, employment may also increase as layoffs may decline due to more stringent firing constraints. Moreover, the effects may depend on the type of contract; workers with a temporary contract have less employment protection. Increasing their protection may increase labour supply notably in an economic upswing when the labour market is tight. Our results suggest that employment protection counter-reforms for temporary workers increase employment growth when the economy is performing above trend. The effects of counter-reforms of unemployment benefits are insignificant.NOVA School of Business and Economics (NOVA SBE)RUNWiese, RasmusJalles, João Tovarde Haan, Jakob2025-04-10T16:00:09Z2025-032025-03-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article11application/pdfhttp://hdl.handle.net/10362/182069eng1538-0653PURE: 114157945https://doi.org/10.1016/j.eap.2025.03.010info:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2025-04-14T01:41:29Zoai:run.unl.pt:10362/182069Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-29T06:26:00.892156Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv The impact of increasing labour market rigidity on employment growth in OECD countries
title The impact of increasing labour market rigidity on employment growth in OECD countries
spellingShingle The impact of increasing labour market rigidity on employment growth in OECD countries
Wiese, Rasmus
Employment
Labour market counter-reforms
Local projections
Nonlinearities
SDG 8 - Decent Work and Economic Growth
title_short The impact of increasing labour market rigidity on employment growth in OECD countries
title_full The impact of increasing labour market rigidity on employment growth in OECD countries
title_fullStr The impact of increasing labour market rigidity on employment growth in OECD countries
title_full_unstemmed The impact of increasing labour market rigidity on employment growth in OECD countries
title_sort The impact of increasing labour market rigidity on employment growth in OECD countries
author Wiese, Rasmus
author_facet Wiese, Rasmus
Jalles, João Tovar
de Haan, Jakob
author_role author
author2 Jalles, João Tovar
de Haan, Jakob
author2_role author
author
dc.contributor.none.fl_str_mv NOVA School of Business and Economics (NOVA SBE)
RUN
dc.contributor.author.fl_str_mv Wiese, Rasmus
Jalles, João Tovar
de Haan, Jakob
dc.subject.por.fl_str_mv Employment
Labour market counter-reforms
Local projections
Nonlinearities
SDG 8 - Decent Work and Economic Growth
topic Employment
Labour market counter-reforms
Local projections
Nonlinearities
SDG 8 - Decent Work and Economic Growth
description Publisher Copyright: © 2025 The Author(s).
publishDate 2025
dc.date.none.fl_str_mv 2025-04-10T16:00:09Z
2025-03
2025-03-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10362/182069
url http://hdl.handle.net/10362/182069
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 1538-0653
PURE: 114157945
https://doi.org/10.1016/j.eap.2025.03.010
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
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repository.mail.fl_str_mv info@rcaap.pt
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