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What do labor market institutions do?
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2013 (English)Report (Other academic)
Abstract [en]

The past couple of decades have seen a huge increase in research on various labor marketinstitutions. This paper offers a brief overview and discussion of research on the labor marketimpacts of minimum wages (MW), unemployment insurance (UI), and employmentprotection legislation (EPL). It is argued that research on UI is largely a success story,involving a fruitful interplay between search theory and empirical work. This research hasestablished that UI matters for labor market behavior, in particular the duration ofunemployment, although there remains substantial uncertainty about the magnitudes of theeffects. The research on MW should have shaken economists’ belief in the competitive labormarket model as a result of frequent failures to find noticeable employment effects despiteconsiderable effects on wages. EPL research has established that employment protectionreduces labor and job turnover but the jury is still out regarding the impact on overallemployment and productivity.

Place, publisher, year, edition, pages
Uppsala, 2013. , 25 p.
Working paper / Department of Economics, Uppsala University (Online), ISSN 1653-6975 ; 2013:23
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URN: urn:nbn:se:uu:diva-211713OAI: oai:DiVA.org:uu-211713DiVA: diva2:668186
Available from: 2013-11-29 Created: 2013-11-29 Last updated: 2013-11-29Bibliographically approved

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Holmlund, Bertil
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