Fiscal adjustments, labour market flexibility and unemployment
Agnello, L., Castro, V., Tovar Jalles, J. & Sousa, R. M.
(2014).
Fiscal adjustments, labour market flexibility and unemployment.
Economics Letters,
124(2), 231-235.
https://doi.org/10.1016/j.econlet.2014.05.029
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.
| Item Type | Article |
|---|---|
| Copyright holders | © 2014 Elsevier B.V. |
| Departments | LSE |
| DOI | 10.1016/j.econlet.2014.05.029 |
| Date Deposited | 08 Jul 2014 |
| URI | https://researchonline.lse.ac.uk/id/eprint/57550 |