Unemployment at risk: the policy determinants of labour market exposure to economic shocks - Sciences Po Access content directly
Journal Articles Economic Policy Year : 2014

Unemployment at risk: the policy determinants of labour market exposure to economic shocks

Fabrice Murtin
  • Function : Author
  • PersonId : 1321643

Abstract

This paper examines the vulnerability of labour markets to adverse economic shocks. We define labour market exposure as the cumulated amount of excess unemployment generated by a shock before unemployment returns to steady-state. We use a panel of 19 countries covering the period 1985–2010 to assess the influence of labour market policies on labour market exposure, which is also calculated country by country. We find that less generous unemployment insurance, more active labour market policies or a lower minimum wage imply a trade-off between average unemployment and labour market exposure, as they help low-skilled workers to get out of unemployment at the cost of increased vulnerability to adverse shocks. On the other hand, reducing the tax wedge is conducive to both lower steady-state unemployment and labour market exposure.
Fichier principal
Vignette du fichier
2014-de-serres-murtin-unemployment-atrisk.pdf (436.8 Ko) Télécharger le fichier
Origin Files produced by the author(s)

Dates and versions

hal-03460398 , version 1 (01-12-2021)

Identifiers

Cite

Alain de Serres, Fabrice Murtin. Unemployment at risk: the policy determinants of labour market exposure to economic shocks. Economic Policy, 2014, 29 (80), pp.603 - 637. ⟨10.1111/1468-0327.12038⟩. ⟨hal-03460398⟩

Collections

SCIENCESPO
21 View
59 Download

Altmetric

Share

Gmail Mastodon Facebook X LinkedIn More