Cover IMF Working Papers
Crises, Labor Market Policy, and Unemployment
Author: Davide Furceri, Mr. Lorenzo E. Bernal-Verdugo, and Mr. Dominique M. Guillaume
Series:
IMF Working Papers
Volume/Issue:
Volume 2012: Issue 065
Language:
English
Publication Date:
01 Mar 2012
DOI:
https://0-doi-org.library.svsu.edu/10.5089/9781463938420.001
ISBN:
9781463938420
ISSN:
1018-5941
Pages:
29
Keywords:
WP; Labor market; flexibility; unemployment; reforms; financial crises; unemployment outcome; youth unemployment; flexibility indicator; medium term; labor market resilience; labor market indicator; resilience to financial crises; Unemployment; Labor market flexibility; Labor market institutions; Labor market policy; Labor markets; Middle East; North Africa; Central and Eastern Europe; Sub-Saharan Africa; East Africa
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Using a sample of 97 countries spanning the period 1980?2008, we estimate that financial crises have a large negative impact on unemployment in the short term, but that this effect rapidly disappears in the medium term in countries with flexible labor market institutions, whereas the impact of financial crises is less pronounced but more persistent in countries with more rigid labor market institutions. These effects are even larger for youth unemployment in the short term and long-term unemployment in the medium term. Conversely, large upfront, or gradual but significant, comprehensive labor market policies have a positive impact on unemployment, albeit only in the medium term.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund