6533b835fe1ef96bd129f4a0

RESEARCH PRODUCT

Fiscal adjustments, labour market flexibility and unemployment

Ricardo M. SousaRicardo M. SousaLuca AgnelloVitor CastroVitor CastroJoão Tovar Jalles

subject

Economics and EconometricsLabour economicsFull employmentYouth and long-term unemploymentmedia_common.quotation_subject1. No povertySettore SECS-P/02 Politica EconomicaFlexibility IndexLabour market flexibilitySocial SciencesPercentage pointUnemployment8. Economic growthUnemploymentFiscal adjustmentEconomicsFiscal adjustmentsFinancemedia_commonLabour market flexibility

description

Using a panel of 17 countries for 1978-2009, we find that tax-driven consolidations increase unemployment by 0.25 percentage points. Labour market flexibility mitigates this: a one-point rise in the flexibility index reduces youth (long-term) unemployment by 0.6-0.7 (1.8-2.2) percentage points.

yearjournalcountryeditionlanguage
2014-08-01
https://hdl.handle.net/1822/30339