Episodes of Unemployment Reduction in Rich, Middle-Income, and Transition Economies

This paper studies the incidence and determinants of episodes of drastic unemployment reduction, defined as swift, substantial, and sustained declines in unemployment. Forty-three episodes are identified over a period of nearly three decades in 94...

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Main Authors:	Freund, Caroline, Rijkers, Bob
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING AVERAGE UNEMPLOYMENT BANKRUPTCY BUSINESS CYCLE COLLECTIVE BARGAINING COMPARATIVE ECONOMICS CONTRACT ENFORCEMENT CRISES CYCLICAL UNEMPLOYMENT DEBT DEMOCRACY DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISMISSAL DOMESTIC VIOLENCE DRIVERS ECONOMIC CONDITIONS ECONOMIC FREEDOM ECONOMIC GROWTH ECONOMICS EMPLOYMENT CREATION EMPLOYMENT GROWTH EXCESSIVE REGULATION EXCHANGE RATES EXPECTED VALUE EXPORTS FIRM SIZE FLEXIBLE LABOR MARKETS FOREIGN DIRECT INVESTMENT FREE TRADE GDP GDP PER CAPITA GROSS FIXED CAPITAL FORMATION GROSS REPLACEMENT RATE HIGH UNEMPLOYMENT INCOME INCOME GROUPS INFLATION INITIAL UNEMPLOYMENT JOB CREATION JOBS LABOR ADJUSTMENT LABOR FORCE LABOR FORCE PARTICIPATION LABOR LAWS LABOR MARKET LABOR MARKET REGULATIONS LABOR MARKETS LABOR REGULATION LABOR REGULATIONS LABOUR LABOUR MARKET LABOUR MARKET RIGIDITIES LEGAL RIGHTS LICENSING RESTRICTIONS LIFE EXPECTANCY LOW UNEMPLOYMENT LOW-INCOME COUNTRIES MACROECONOMIC CONDITIONS MACROECONOMIC MANAGEMENT MACROECONOMICS MEDIUM OF EXCHANGE MINIMUM WAGES MONETARY POLICY MORTALITY NATURAL RATE OF UNEMPLOYMENT NET JOB CREATION POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL PROCESS PREVIOUS RESULTS PREVIOUS SECTION PRICE CONTROLS PRIVATE GAIN PRIVATE SECTOR PROGRESS PROPERTY RIGHTS PURCHASING POWER PURCHASING POWER PARITY REAL GDP REAL INTEREST RATES REGULATORY FRAMEWORK REGULATORY FRAMEWORKS RULE OF LAW SECURE PROPERTY RIGHTS SEVERANCE PAY SEVERANCE PAYMENTS SOCIAL RESEARCH TRADE BARRIERS TRADE REFORMS TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT DECLINES UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE BENEFITS UNEMPLOYMENT LEVELS UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT REDUCTION WAR WELL-FUNCTIONING LABOR MARKETS WORKER WORKERS WORKING HOURS WTO
Online Access:	http://documents.worldbank.org/curated/en/2014/05/19580996/episodes-unemployment-reduction-rich-middle-income-transition-economies http://hdl.handle.net/10986/18795

id	okr-10986-18795
recordtype	oai_dc
spelling	okr-10986-187952021-04-23T14:03:49Z Episodes of Unemployment Reduction in Rich, Middle-Income, and Transition Economies Freund, Caroline Rijkers, Bob ACCOUNTING AVERAGE UNEMPLOYMENT BANKRUPTCY BUSINESS CYCLE COLLECTIVE BARGAINING COMPARATIVE ECONOMICS CONTRACT ENFORCEMENT CRISES CYCLICAL UNEMPLOYMENT DEBT DEMOCRACY DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISMISSAL DOMESTIC VIOLENCE DRIVERS ECONOMIC CONDITIONS ECONOMIC FREEDOM ECONOMIC GROWTH ECONOMICS EMPLOYMENT CREATION EMPLOYMENT GROWTH EXCESSIVE REGULATION EXCHANGE RATES EXPECTED VALUE EXPORTS FIRM SIZE FLEXIBLE LABOR MARKETS FOREIGN DIRECT INVESTMENT FREE TRADE GDP GDP PER CAPITA GROSS FIXED CAPITAL FORMATION GROSS REPLACEMENT RATE HIGH UNEMPLOYMENT INCOME INCOME GROUPS INFLATION INITIAL UNEMPLOYMENT JOB CREATION JOBS LABOR ADJUSTMENT LABOR FORCE LABOR FORCE PARTICIPATION LABOR LAWS LABOR MARKET LABOR MARKET REGULATIONS LABOR MARKETS LABOR REGULATION LABOR REGULATIONS LABOUR LABOUR MARKET LABOUR MARKET RIGIDITIES LEGAL RIGHTS LICENSING RESTRICTIONS LIFE EXPECTANCY LOW UNEMPLOYMENT LOW-INCOME COUNTRIES MACROECONOMIC CONDITIONS MACROECONOMIC MANAGEMENT MACROECONOMICS MEDIUM OF EXCHANGE MINIMUM WAGES MONETARY POLICY MORTALITY NATURAL RATE OF UNEMPLOYMENT NET JOB CREATION POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL PROCESS PREVIOUS RESULTS PREVIOUS SECTION PRICE CONTROLS PRIVATE GAIN PRIVATE SECTOR PROGRESS PROPERTY RIGHTS PURCHASING POWER PURCHASING POWER PARITY REAL GDP REAL INTEREST RATES REGULATORY FRAMEWORK REGULATORY FRAMEWORKS RULE OF LAW SECURE PROPERTY RIGHTS SEVERANCE PAY SEVERANCE PAYMENTS SOCIAL RESEARCH TRADE BARRIERS TRADE REFORMS TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT DECLINES UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE BENEFITS UNEMPLOYMENT LEVELS UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT REDUCTION WAR WELL-FUNCTIONING LABOR MARKETS WORKER WORKERS WORKING HOURS WTO This paper studies the incidence and determinants of episodes of drastic unemployment reduction, defined as swift, substantial, and sustained declines in unemployment. Forty-three episodes are identified over a period of nearly three decades in 94 rich, middle-income, and transition countries. Unemployment reductions often coincide with an acceleration of growth and an improvement in macroeconomic conditions. Episodes are much more prevalent in countries with higher levels of unemployment and, given unemployment, are more likely in countries with better regulation. An efficient legal system that enforces contracts expeditiously is particularly important for reducing unemployment. The results imply that while employment is largely related to the business cycle, better regulation reduces the likelihood of high unemployment and facilitates a more rapid recovery in the event unemployment builds up. 2014-06-26T21:22:02Z 2014-06-26T21:22:02Z 2014-05 http://documents.worldbank.org/curated/en/2014/05/19580996/episodes-unemployment-reduction-rich-middle-income-transition-economies http://hdl.handle.net/10986/18795 English en_US Policy Research Working Paper;No. 6891 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTING AVERAGE UNEMPLOYMENT BANKRUPTCY BUSINESS CYCLE COLLECTIVE BARGAINING COMPARATIVE ECONOMICS CONTRACT ENFORCEMENT CRISES CYCLICAL UNEMPLOYMENT DEBT DEMOCRACY DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISMISSAL DOMESTIC VIOLENCE DRIVERS ECONOMIC CONDITIONS ECONOMIC FREEDOM ECONOMIC GROWTH ECONOMICS EMPLOYMENT CREATION EMPLOYMENT GROWTH EXCESSIVE REGULATION EXCHANGE RATES EXPECTED VALUE EXPORTS FIRM SIZE FLEXIBLE LABOR MARKETS FOREIGN DIRECT INVESTMENT FREE TRADE GDP GDP PER CAPITA GROSS FIXED CAPITAL FORMATION GROSS REPLACEMENT RATE HIGH UNEMPLOYMENT INCOME INCOME GROUPS INFLATION INITIAL UNEMPLOYMENT JOB CREATION JOBS LABOR ADJUSTMENT LABOR FORCE LABOR FORCE PARTICIPATION LABOR LAWS LABOR MARKET LABOR MARKET REGULATIONS LABOR MARKETS LABOR REGULATION LABOR REGULATIONS LABOUR LABOUR MARKET LABOUR MARKET RIGIDITIES LEGAL RIGHTS LICENSING RESTRICTIONS LIFE EXPECTANCY LOW UNEMPLOYMENT LOW-INCOME COUNTRIES MACROECONOMIC CONDITIONS MACROECONOMIC MANAGEMENT MACROECONOMICS MEDIUM OF EXCHANGE MINIMUM WAGES MONETARY POLICY MORTALITY NATURAL RATE OF UNEMPLOYMENT NET JOB CREATION POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL PROCESS PREVIOUS RESULTS PREVIOUS SECTION PRICE CONTROLS PRIVATE GAIN PRIVATE SECTOR PROGRESS PROPERTY RIGHTS PURCHASING POWER PURCHASING POWER PARITY REAL GDP REAL INTEREST RATES REGULATORY FRAMEWORK REGULATORY FRAMEWORKS RULE OF LAW SECURE PROPERTY RIGHTS SEVERANCE PAY SEVERANCE PAYMENTS SOCIAL RESEARCH TRADE BARRIERS TRADE REFORMS TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT DECLINES UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE BENEFITS UNEMPLOYMENT LEVELS UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT REDUCTION WAR WELL-FUNCTIONING LABOR MARKETS WORKER WORKERS WORKING HOURS WTO
spellingShingle	ACCOUNTING AVERAGE UNEMPLOYMENT BANKRUPTCY BUSINESS CYCLE COLLECTIVE BARGAINING COMPARATIVE ECONOMICS CONTRACT ENFORCEMENT CRISES CYCLICAL UNEMPLOYMENT DEBT DEMOCRACY DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISMISSAL DOMESTIC VIOLENCE DRIVERS ECONOMIC CONDITIONS ECONOMIC FREEDOM ECONOMIC GROWTH ECONOMICS EMPLOYMENT CREATION EMPLOYMENT GROWTH EXCESSIVE REGULATION EXCHANGE RATES EXPECTED VALUE EXPORTS FIRM SIZE FLEXIBLE LABOR MARKETS FOREIGN DIRECT INVESTMENT FREE TRADE GDP GDP PER CAPITA GROSS FIXED CAPITAL FORMATION GROSS REPLACEMENT RATE HIGH UNEMPLOYMENT INCOME INCOME GROUPS INFLATION INITIAL UNEMPLOYMENT JOB CREATION JOBS LABOR ADJUSTMENT LABOR FORCE LABOR FORCE PARTICIPATION LABOR LAWS LABOR MARKET LABOR MARKET REGULATIONS LABOR MARKETS LABOR REGULATION LABOR REGULATIONS LABOUR LABOUR MARKET LABOUR MARKET RIGIDITIES LEGAL RIGHTS LICENSING RESTRICTIONS LIFE EXPECTANCY LOW UNEMPLOYMENT LOW-INCOME COUNTRIES MACROECONOMIC CONDITIONS MACROECONOMIC MANAGEMENT MACROECONOMICS MEDIUM OF EXCHANGE MINIMUM WAGES MONETARY POLICY MORTALITY NATURAL RATE OF UNEMPLOYMENT NET JOB CREATION POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL PROCESS PREVIOUS RESULTS PREVIOUS SECTION PRICE CONTROLS PRIVATE GAIN PRIVATE SECTOR PROGRESS PROPERTY RIGHTS PURCHASING POWER PURCHASING POWER PARITY REAL GDP REAL INTEREST RATES REGULATORY FRAMEWORK REGULATORY FRAMEWORKS RULE OF LAW SECURE PROPERTY RIGHTS SEVERANCE PAY SEVERANCE PAYMENTS SOCIAL RESEARCH TRADE BARRIERS TRADE REFORMS TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT DECLINES UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE BENEFITS UNEMPLOYMENT LEVELS UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT REDUCTION WAR WELL-FUNCTIONING LABOR MARKETS WORKER WORKERS WORKING HOURS WTO Freund, Caroline Rijkers, Bob Episodes of Unemployment Reduction in Rich, Middle-Income, and Transition Economies
relation	Policy Research Working Paper;No. 6891
description	This paper studies the incidence and determinants of episodes of drastic unemployment reduction, defined as swift, substantial, and sustained declines in unemployment. Forty-three episodes are identified over a period of nearly three decades in 94 rich, middle-income, and transition countries. Unemployment reductions often coincide with an acceleration of growth and an improvement in macroeconomic conditions. Episodes are much more prevalent in countries with higher levels of unemployment and, given unemployment, are more likely in countries with better regulation. An efficient legal system that enforces contracts expeditiously is particularly important for reducing unemployment. The results imply that while employment is largely related to the business cycle, better regulation reduces the likelihood of high unemployment and facilitates a more rapid recovery in the event unemployment builds up.
format	Publications & Research :: Policy Research Working Paper
author	Freund, Caroline Rijkers, Bob
author_facet	Freund, Caroline Rijkers, Bob
author_sort	Freund, Caroline
title	Episodes of Unemployment Reduction in Rich, Middle-Income, and Transition Economies
title_short	Episodes of Unemployment Reduction in Rich, Middle-Income, and Transition Economies
title_full	Episodes of Unemployment Reduction in Rich, Middle-Income, and Transition Economies
title_fullStr	Episodes of Unemployment Reduction in Rich, Middle-Income, and Transition Economies
title_full_unstemmed	Episodes of Unemployment Reduction in Rich, Middle-Income, and Transition Economies
title_sort	episodes of unemployment reduction in rich, middle-income, and transition economies
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2014/05/19580996/episodes-unemployment-reduction-rich-middle-income-transition-economies http://hdl.handle.net/10986/18795
_version_	1764442707754745856

Episodes of Unemployment Reduction in Rich, Middle-Income, and Transition Economies

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