Do labor market rigidities matter for business cycles? Yes they do

  • Authors: Stefano Gnocchi and Evi Pappa
  • BSE Working Paper: 411 | September 15
  • Keywords: Business cycles , Labor market institutions , OECD countries , rank sum test , active labor market policies
  • JEL codes: E32, E6, J01, J08

Abstract

We study whether labor market institutions affect the volatility and correlations of macroeconomic variables for a sample of 20 OECD countries. Labor market rigidities are characterized with a number of indicators

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