نهادهای بازار کار و دوره پویایی اشتغال

We present an empirical analysis of the effects of labour market institutions on the employment dynamics over the cycle. In the first part of the paper, a theoretical framework is provided with particular emphasis on working time regulations. The conclusions of the theory are tested in the second part on a sample of 20 OECD countries observed over the period 1975–1997. The empirical analysis is focused on expansions, contractions and different expansion segments. The claims of the theory are confirmed and a measure of the influence of labour market institutions on the employment responsiveness to the business cycle is provided through simulations.

The analysis of the impact of labour market institutions on the economic performance of OECD countries has proliferated in the empirical economic literature of recent years. Studies of Belot and van Ours (2000), Blanchard and Wolfers (2000), Bertola et al. (2002) and Nickell et al. (2002) have principally focused on the impact of labour market institutions on the unemployment performance of OECD countries in the last decades.1 However, one important feature of labour market institutions remains unexplored at the empirical level: their impact on employment dynamics over the cycle.2 This paper aims to fill that gap.

We present an empirical analysis of the effects of labour market institutions on the responsiveness of employment to the business cycle, focusing on the role played by employment protection regulations and working time standards. The analysis is introduced by a theoretical model based on Nickell (1978) where we consider the impact of institutions on the cyclical dynamics of employment and hours. In particular, we analyse the effects of overtime standards as well as the potential role of downward working time regulations during the slump. The predictions of the model are tested using a sample of 20 OECD countries observed for the period 1975–1995.