How Do Policies Affect the Exit Rate out of Unemployment? Disentangling Job Creation from Labour Market Frictions - Sciences Po Access content directly
Journal Articles LABOUR Year : 2014

How Do Policies Affect the Exit Rate out of Unemployment? Disentangling Job Creation from Labour Market Frictions

Fabrice Murtin
  • Function : Author
  • PersonId : 1321643

Abstract

This paper assesses the effects of labour market policies on the unemployment outflow rate while disentangling two channels, namely labour market tightness and employer–employee matching efficiency. Using a sample of 11 OECD countries over the period 1985–2007, we treat the endogeneity of market tightness with business cycle shocks and the tax wedge as instruments. We find that the replacement rate of unemployment benefits, Active Labour Market Policies as well as the tax wedge in countries with poorly representative unions, have a significant, robust, and large impact on market tightness. Employment protection has a negative but small impact on matching efficiency. Overall, policy effects appear to be mostly channeled through market tightness and job creation.
Fichier principal
Vignette du fichier
2014-murtin-et-al-labour.pdf (379.59 Ko) Télécharger le fichier
Origin : Files produced by the author(s)

Dates and versions

hal-03460433 , version 1 (01-12-2021)

Identifiers

Cite

Fabrice Murtin, Alain de Serres. How Do Policies Affect the Exit Rate out of Unemployment? Disentangling Job Creation from Labour Market Frictions. LABOUR, 2014, 28 (2), pp.190 - 208. ⟨10.1111/labr.12029⟩. ⟨hal-03460433⟩

Collections

SCIENCESPO
18 View
56 Download

Altmetric

Share

Gmail Facebook X LinkedIn More