1. The potential effects of labour market duality for countries in a monetary union.
- Author
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KOSIOR, Anna, RUBASZEK, Michał, and WIERUS, Kamil
- Subjects
LABOR market ,MONETARY unions ,INTERNATIONAL economic integration ,UNEMPLOYMENT & economics ,PERSISTENCE (Economics) ,ECONOMIC conditions in the Eurozone - Abstract
This article investigates whether the varying prevalence of temporary employment contracts across Economic and Monetary Union (EMU) countries can explain their different unemployment dynamics. Using a database of labour market institutions, dynamic panel regressions are carried out for 11 eurozone countries for 1995-2013. Labour market duality - i.e. the co-existence of permanent and temporary contracts - is found to have a robust and significant effect on unemployment dynamics: a high duality rate increases the response of unemployment to output shocks while decreasing its persistence. The authors suggest that introducing a 'single contract' could improve stability at both eurozone and country level. [ABSTRACT FROM AUTHOR]
- Published
- 2016
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