Fiscal Adjustments, Labour Market Flexibility and Unemployment
- Authors: Agnello, L; Castro, V; Jalles, J; Sousa, R
- Publication year: 2014
- Type: Articolo in rivista (Articolo in rivista)
- OA Link: http://hdl.handle.net/10447/97646
Abstract
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.