چه کسی از نهادهای بازار کار سود می برد؟ مدارک و شواهد از نظرسنجی رضایت از زندگی

This paper investigates the welfare effects of labor market institutions, placing an emphasis on how the institutions’ effects are differentiated by socio-demographic subgroups. We study how life satisfaction is affected by employment protection and the level and duration of unemployment benefit payments. Using data for almost 370,000 individuals in ten European countries, 1975–2002, we find that more employment protection and a higher benefit replacement rate increase the life satisfaction of the average citizen. At the subgroup level, different segments of the population are affected differently by the two categories of labor market institutions. While employment protection is valued especially by employed persons of intermediate age, it is less beneficial for women/housewives and for older persons. More generous unemployment insurance is valued especially by these latter subgroups and by the unemployed.

Employment protection and unemployment benefit are economic institutions designed to protect people against the adverse effects of macroeconomic uncertainties that arise from recession and unemployment. These labor market institutions have a long tradition in many countries and are widely viewed as essential ingredients of the “welfare state”. However, employment protection and unemployment benefit have recently come under attack for being too costly in terms of macroeconomic performance, in particular by reducing economic activity and raising unemployment.1

In this paper we undertook a comprehensive assessment of the relationship between life satisfaction and several types of labor market institutions in Europe. Being based on data for almost 370,000 individuals, 1975–2002, we found that stronger employment protection and higher benefit replacement rates increase the life satisfaction of the “average citizen”, whereas benefit duration has no significant effects on average. These findings appear to be robust with respect to possible feedback effects of the labor market institutions on macroeconomic variables.