Labor Market Institutions : A Review of the Literature
This paper reviews the findings of more than 150 studies on the impacts of four types of labor market institutions: minimum wages, employment protection regulation, unions and collective bargaining, and mandated benefits. The review places particular emphasis on results from developing countries. Im...
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| Format: | Policy Research Working Paper |
| Language: | en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://hdl.handle.net/10986/16382 |
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okr-10986-16382 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
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en_US |
| topic |
access to employment active labor active labor market active labor market programs adverse effects Aggregate employment assessing labor market bargaining power business cycle capital investments civil unrest collective agreements collective bargaining collective dismissal competitive equilibrium competitive labor markets competitive market crises cultural values Current Population developing countries Development Economics discrimination dismissal dismissals displaced workers drivers earning Earnings inequality economic efficiency economic policies employee employer behavior employer-employee relationship employers employment employment contracts employment dynamics employment effect employment effects employment impact employment impacts employment levels Employment of women employment opportunities employment performance employment practices employment protection legislation employment protection rules Employment Research Employment stability Employment status equality of opportunity exogenous variables family formation family ties firing firing costs firm entry formal labor market high unemployment high unemployment rates hiring human capital immigrants imperfect information income income distribution income inequality industrial relations industrialization informal employment informal sector informal sector workers innovation job creation job destruction job loss job opportunities job performance job security job security regulations job tenure Jobs labor codes labor costs labor demand labor force labor force participation labor laws labor legislation Labor Market Labor Market Institutions labor market outcome labor market outcomes labor market performance labor market regulation labor market regulations labor markets labor productivity labor productivity growth labor reallocation labor regulations labor relations labor standards labor supply labor turnover labour labour market labour market performance Labour Studies laid-off workers layoffs level of development living standards long-term unemployment low unemployment low-income countries low-wage employment mandated benefits market failures market liberalization minimum wage minimum wages multifactor productivity multifactor productivity growth perfect competition permanent employment permanent jobs permanent worker permanent workers personnel policy implications Policy Research Policy Research Working Paper political economy political process present value primary source private sectors product market product market regulations productivity effect productivity effects productivity growth productivity levels progress quantitative indicators quantitative measures regular contracts respect rule of law safety severance arrangements severance payments social benefits social capital social cohesion social inclusion social policy social returns State Intervention structural unemployment substitution effect teenage employment teenagers temporary employment temporary jobs temporary workers termination total factor productivity trade unions training costs unemployment unemployment insurance unemployment rate unintended consequences union density union membership union wage premium unionization unskilled labor unskilled workers vulnerable groups wage bargaining wage compression wage differentials wage dispersion wage distribution wage effect wage effects wage floors wage gains wage increases wage inequality wage losses wage policies wage premium wage premiums War worker workers working conditions working poor young people youth employment youth labor youth unemployment |
| spellingShingle |
access to employment active labor active labor market active labor market programs adverse effects Aggregate employment assessing labor market bargaining power business cycle capital investments civil unrest collective agreements collective bargaining collective dismissal competitive equilibrium competitive labor markets competitive market crises cultural values Current Population developing countries Development Economics discrimination dismissal dismissals displaced workers drivers earning Earnings inequality economic efficiency economic policies employee employer behavior employer-employee relationship employers employment employment contracts employment dynamics employment effect employment effects employment impact employment impacts employment levels Employment of women employment opportunities employment performance employment practices employment protection legislation employment protection rules Employment Research Employment stability Employment status equality of opportunity exogenous variables family formation family ties firing firing costs firm entry formal labor market high unemployment high unemployment rates hiring human capital immigrants imperfect information income income distribution income inequality industrial relations industrialization informal employment informal sector informal sector workers innovation job creation job destruction job loss job opportunities job performance job security job security regulations job tenure Jobs labor codes labor costs labor demand labor force labor force participation labor laws labor legislation Labor Market Labor Market Institutions labor market outcome labor market outcomes labor market performance labor market regulation labor market regulations labor markets labor productivity labor productivity growth labor reallocation labor regulations labor relations labor standards labor supply labor turnover labour labour market labour market performance Labour Studies laid-off workers layoffs level of development living standards long-term unemployment low unemployment low-income countries low-wage employment mandated benefits market failures market liberalization minimum wage minimum wages multifactor productivity multifactor productivity growth perfect competition permanent employment permanent jobs permanent worker permanent workers personnel policy implications Policy Research Policy Research Working Paper political economy political process present value primary source private sectors product market product market regulations productivity effect productivity effects productivity growth productivity levels progress quantitative indicators quantitative measures regular contracts respect rule of law safety severance arrangements severance payments social benefits social capital social cohesion social inclusion social policy social returns State Intervention structural unemployment substitution effect teenage employment teenagers temporary employment temporary jobs temporary workers termination total factor productivity trade unions training costs unemployment unemployment insurance unemployment rate unintended consequences union density union membership union wage premium unionization unskilled labor unskilled workers vulnerable groups wage bargaining wage compression wage differentials wage dispersion wage distribution wage effect wage effects wage floors wage gains wage increases wage inequality wage losses wage policies wage premium wage premiums War worker workers working conditions working poor young people youth employment youth labor youth unemployment Betcherman, Gordon Labor Market Institutions : A Review of the Literature |
| relation |
Policy Research Working Paper;No.6276 |
| description |
This paper reviews the findings of more than 150 studies on the impacts of four types of labor market institutions: minimum wages, employment protection regulation, unions and collective bargaining, and mandated benefits. The review places particular emphasis on results from developing countries. Impacts studied are on living standards (employment and earnings effects), productivity, and social cohesion, to the extent that this has been analyzed. Strong and opposing views are held on the costs and benefits of labor market institutions. On balance, the results of this review suggest that, in most cases, the impacts of these institutions are smaller than the heat of the debates would suggest. Efficiency effects of labor market regulations and collective bargaining are sometimes found but not always, and the effects can be in either direction and are usually modest. Distributional impacts are clearer, with two effects predominating: an equalizing effect among covered workers but groups such as youth, women, and the less skilled disproportionately outside the coverage and its benefits. While the overall conclusion is one of modest effects in most cases, this does not mean that impacts cannot be more dramatic where regulations are set or institutions operate in ways that exacerbate the labor market imperfections that they were designed to address. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Betcherman, Gordon |
| author_facet |
Betcherman, Gordon |
| author_sort |
Betcherman, Gordon |
| title |
Labor Market Institutions : A Review of the Literature |
| title_short |
Labor Market Institutions : A Review of the Literature |
| title_full |
Labor Market Institutions : A Review of the Literature |
| title_fullStr |
Labor Market Institutions : A Review of the Literature |
| title_full_unstemmed |
Labor Market Institutions : A Review of the Literature |
| title_sort |
labor market institutions : a review of the literature |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://hdl.handle.net/10986/16382 |
| _version_ |
1764433031875002368 |
| spelling |
okr-10986-163822021-04-23T14:03:28Z Labor Market Institutions : A Review of the Literature Betcherman, Gordon access to employment active labor active labor market active labor market programs adverse effects Aggregate employment assessing labor market bargaining power business cycle capital investments civil unrest collective agreements collective bargaining collective dismissal competitive equilibrium competitive labor markets competitive market crises cultural values Current Population developing countries Development Economics discrimination dismissal dismissals displaced workers drivers earning Earnings inequality economic efficiency economic policies employee employer behavior employer-employee relationship employers employment employment contracts employment dynamics employment effect employment effects employment impact employment impacts employment levels Employment of women employment opportunities employment performance employment practices employment protection legislation employment protection rules Employment Research Employment stability Employment status equality of opportunity exogenous variables family formation family ties firing firing costs firm entry formal labor market high unemployment high unemployment rates hiring human capital immigrants imperfect information income income distribution income inequality industrial relations industrialization informal employment informal sector informal sector workers innovation job creation job destruction job loss job opportunities job performance job security job security regulations job tenure Jobs labor codes labor costs labor demand labor force labor force participation labor laws labor legislation Labor Market Labor Market Institutions labor market outcome labor market outcomes labor market performance labor market regulation labor market regulations labor markets labor productivity labor productivity growth labor reallocation labor regulations labor relations labor standards labor supply labor turnover labour labour market labour market performance Labour Studies laid-off workers layoffs level of development living standards long-term unemployment low unemployment low-income countries low-wage employment mandated benefits market failures market liberalization minimum wage minimum wages multifactor productivity multifactor productivity growth perfect competition permanent employment permanent jobs permanent worker permanent workers personnel policy implications Policy Research Policy Research Working Paper political economy political process present value primary source private sectors product market product market regulations productivity effect productivity effects productivity growth productivity levels progress quantitative indicators quantitative measures regular contracts respect rule of law safety severance arrangements severance payments social benefits social capital social cohesion social inclusion social policy social returns State Intervention structural unemployment substitution effect teenage employment teenagers temporary employment temporary jobs temporary workers termination total factor productivity trade unions training costs unemployment unemployment insurance unemployment rate unintended consequences union density union membership union wage premium unionization unskilled labor unskilled workers vulnerable groups wage bargaining wage compression wage differentials wage dispersion wage distribution wage effect wage effects wage floors wage gains wage increases wage inequality wage losses wage policies wage premium wage premiums War worker workers working conditions working poor young people youth employment youth labor youth unemployment This paper reviews the findings of more than 150 studies on the impacts of four types of labor market institutions: minimum wages, employment protection regulation, unions and collective bargaining, and mandated benefits. The review places particular emphasis on results from developing countries. Impacts studied are on living standards (employment and earnings effects), productivity, and social cohesion, to the extent that this has been analyzed. Strong and opposing views are held on the costs and benefits of labor market institutions. On balance, the results of this review suggest that, in most cases, the impacts of these institutions are smaller than the heat of the debates would suggest. Efficiency effects of labor market regulations and collective bargaining are sometimes found but not always, and the effects can be in either direction and are usually modest. Distributional impacts are clearer, with two effects predominating: an equalizing effect among covered workers but groups such as youth, women, and the less skilled disproportionately outside the coverage and its benefits. While the overall conclusion is one of modest effects in most cases, this does not mean that impacts cannot be more dramatic where regulations are set or institutions operate in ways that exacerbate the labor market imperfections that they were designed to address. 2013-12-17T15:45:20Z 2013-12-17T15:45:20Z 2012-11 http://hdl.handle.net/10986/16382 en_US Policy Research Working Paper;No.6276 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |