Fiscal adjustments, labour market flexibility and unemployment
Agnello, Luca; Castro, Vítor; Tovar Jalles, João; and Sousa, Ricardo M.
(2014)
Fiscal adjustments, labour market flexibility and unemployment.
Economics Letters, 124 (2).
pp. 231-235.
ISSN 0165-1765
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 |
|---|---|
| Keywords | fiscal adjustments,labour market flexibility,unemployment,youth and long-term unemployment |
| Departments | LSE |
| DOI | 10.1016/j.econlet.2014.05.029 |
| Date Deposited | 08 Jul 2014 11:53 |
| URI | https://researchonline.lse.ac.uk/id/eprint/57550 |