Fiscal adjustments, labour market flexibility and unemployment
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.
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| Other Authors: | , , |
| Format: | article |
| Language: | eng |
| Published: |
2014
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| Subjects: | |
| Online Access: | http://hdl.handle.net/1822/30339 |
| Country: | Portugal |
| Oai: | oai:repositorium.sdum.uminho.pt:1822/30339 |