Abstract
This paper compares non-enforceable and enforceable measures of labor rigidities as a measure of the quality of labor institutions, and tests whether such labor rigidities are conducive to long-run growth. We find that non-enforceable labor regulations do not have a bearing on economic growth, but enforceable labor regulations do. In fact, when using a GMM-IV method for a panel data of countries during the period 1970-2000 that accounts for weak endogeneity, we find that such a link is negative and statistically significant. It appears that labor rigidities are thus negatively linked with long-run economic growth.
| Original language | English |
|---|---|
| Pages (from-to) | 38-49 |
| Number of pages | 12 |
| Journal | Emerging Markets Review |
| Volume | 8 |
| Issue number | 1 |
| DOIs | |
| State | Published - 1 Mar 2007 |
| Externally published | Yes |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth
Keywords
- Enforcement
- GMM-IV
- Growth
- Institutions
- Labor rigidities
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