Long-term unemployment in the varieties of capitalism

Chilosi, Alberto (2013): Long-term unemployment in the varieties of capitalism.

Abstract

This paper considers how the different varieties of capitalism affect the rate of long-term unemployment. The liberal market variety, where employment protection is the lowest, presents lower rates of long-term unemployment than the continental European, or the Mediterranean varieties. In the latter both employment protection and long-term unemployment are the highest and labour market participation the lowest. But the social-democratic Scandinavian variety gets the best of both worlds: low rates of long-term unemployment, high rates of labour participation, lower degree of inequality, together with relatively high levels of employment protection. Low rates of long-term unemployment and high levels of labour participation are also produced by the far-Eastern Asian variety, but at the cost of a markedly dualistic labour market structure.

• Item Type: MPRA Paper
• Language: English
• Keywords: Long-term unemployment, varieties of capitalism, economic fallacies
• Subjects: J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J60 - General; P - Economic Systems > P1 - Capitalist Systems

References

Amable, B., (2003): The Diversity of Modern Capitalism, Oxford: Oxford Un. Press

Amable, B. (2009): Structural Reforms in Europe and the (In)Coherence of Institutions, Oxford Review of Economic Policy, 25: 17–39

Andersen T. M., Holmström B, Honkapohja S., Korkman S, Söderström H. T., Vartiainen J., (2007): The Nordic Model, Embracing Globalization and Sharing Risks, Helsinki: The Research Institute of the Finnish Economy (ETLA)

Aoki, M., (1994): The Japanese Firm as a System of Attributes: A Survey and Research Agenda, in M. Aoki, R. Dorem The Japanese Firm: Sources of Competitive Strength, Oxford: Clarendon Press: 11-40.

Becker, U., (2009): Open Varieties of Capitalism Continuity, Change and Performances, Basinstoke: Palgrave McMillan

Calmors L., Driffil J., (1988): Bargaining Structure, Corporatism and Macroeconomic Performance, Economic Policy, 6: 13-47

Chilosi, A., (2012): Stakeholder Protection, Varieties of Capitalism, and Long-Term Unemployment, The European Journal of Comparative Economics, 9: 197-228

Clark A., Postel-Vinay F., (2009): Job Security and Job Protection, Oxford Economic Papers, 61: 207–239

Demsetz, H., (1969): Information and Efficiency: Another Viewpoint, Journal of Law and Economics, 12: 1-22

Freeman, R. B., (1988): Labour Market Institutions and Economic Performance, Economic Policy, 3: 63-80. Stable URL: http://www.jstor.org/stable/1344504

Grubb, D., J. Lee, Tergeist, P., (2007): Addressing Labour Market Duality in Korea, OECD Social, Employment and Migration Working Papers, No. 61, http://dx.doi.org/10.1787/058184274204

Hall P.A., Soskice D., (2001): Introduction, in P.A. Hall., D. Soskice (eds.), Varieties of Capitalism, Oxford: Oxford University Press

ILO, (2011): Key Indicators of the Labour Market (KILM), Seventh Edition, http://www.ilo.org/empelm/pubs/WCMS_114060/lang--en/index.htm

Martin, J., Scarpetta, P., (2011): ‘Setting It Right: Employment Protection, Labour Reallocation and Productivity’, IZA Policy Paper No. 27, http://ftp.iza.org/pp27.pdf

OECD, (2010): Indicators on Employment Protection - annual time series data 1985-2008, Version 2 - updated 24-09-2010, www.oecd.org/dataoecd/62/38/42773608.xls

Skedinger P., (2010): Employment Protection Legislation: Evolution, Effects, Winners and Losers, Cheltenham, Elgar

Tachibanaki T., Taki A. (2000): Capital and Labour in Japan: the Functions of Two Actor Markets, Abingdon: Routledge

Walsh, B., (2002): When unemployment disappears: Ireland in the 1990s, UCD Centre for Economic Research Working Paper Series WP02/29, University College Dublin. School of Economics, http://www.ucd.ie/economics/research/papers/2002/WP02.29.pdf