6533b832fe1ef96bd129afc4

RESEARCH PRODUCT

A reply to "banking crises, labor reforms, and unemployment: A comment"

Dominique GuillaumeDavide FurceriDavide FurceriLorenzo E. Bernal-verdugoLorenzo E. Bernal-verdugo

subject

MacroeconomicsEconomics and EconometricsReformUnemploymentmedia_common.quotation_subjectUnemploymentEconomicsBanking criseMedium termmedia_commonLabor market

description

Aleksynka (2015) points to some important methodological flaws in the labor market indicators data used in Bernal-Verdugo, Furceri and Guillaume (2013) [BFG]. This paper revisits the empirical findings presented in BFG, and shows that the results and conclusions are little affected by these methodological flaws. In particular, we find that: (i) while in countries with more flexible labor markets the impact of banking crises is sharper but short-lived, in countries with more rigid labor markets the effect is initially more subdued but highly persistent; (ii) comprehensive labor market reforms have a positive impact on unemployment, albeit only in the medium term.

yearjournalcountryeditionlanguage
2015-11-01
10.1016/j.jce.2015.11.001http://hdl.handle.net/10447/243273