TY - JOUR
T1 - Institutional enforcement, labor-market rigidities, and economic performance
AU - Calderon, Cesar
AU - Chong, Alberto
AU - Leon, Gianmarco
PY - 2007/3/1
Y1 - 2007/3/1
N2 - 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.
AB - 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.
KW - Enforcement
KW - GMM-IV
KW - Growth
KW - Institutions
KW - Labor rigidities
KW - Enforcement
KW - GMM-IV
KW - Growth
KW - Institutions
KW - Labor rigidities
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U2 - 10.1016/j.ememar.2006.11.001
DO - 10.1016/j.ememar.2006.11.001
M3 - Article in a journal
SN - 1566-0141
VL - 8
SP - 38
EP - 49
JO - Emerging Markets Review
JF - Emerging Markets Review
IS - 1
ER -