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- W2912182743 abstract "Using longitudinal data on labour law for 108 countries over the period 1996–2013, the present study estimates the impact of labour regulation on total and youth employment. The study fitted three alternative dynamic panel data models based on different assumptions on cross-country heterogeneity: countries are identical in all respects with heterogeneity in time-invariant factors (Dynamic Fixed Effect model), countries are heterogeneous in all time-variant and invariant factors (Mean Group model) and countries are heterogeneous in time-invariant factors and in short-run adjustment mechanisms which are convergent towards a long-run relationships among the variables under study (Pooled Mean Group model). None of them found a statistically significant unfavourable impact of aggregate labour regulation or its component dealing with dismissal on total and youth employment in the whole sample of 108 countries or in the two sub-samples: 23 ‘developed’ and 85 ‘developing and emerging’ countries. Rather in many cases Pooled Mean Group models (sometimes corroborated by Dynamic Fixed Effect models) found a favourable effect of labour regulation on total and youth employment. Theoretically Pooled Mean Group model seems to be more appealing. In panel data model it makes sense to derive a long-term fundamental relationship that comes out of varieties of time-variant factors influencing short-term adjustment process and time-invariant history and initial conditions. Pooled Mean Group model allows for country-wise difference in short-term adjustment process and the time-invariant country heterogeneity. So we can draw our conclusion from the Pooled Mean Group estimates; Dynamic Fixed Effect and Mean Group model estimates by and large give no significant and diametrically opposite result: labour regulation in general and dismissal regulation in particular promotes total and youth employment. Thus our study casts serious doubt on the orthodox standpoint that strictness of labour regulation hurts labour by limiting the scope of employment especially for the youth population." @default.
- W2912182743 created "2019-02-21" @default.
- W2912182743 creator A5089644341 @default.
- W2912182743 date "2017-03-30" @default.
- W2912182743 modified "2023-09-25" @default.
- W2912182743 title "Does Labour Law Hurt Labour by Reducing Employment" @default.
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- W2912182743 hasPublicationYear "2017" @default.
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