Academic Journal of Business & Management, 2020, 2(3); doi: 10.25236/AJBM.2020.020309.
Aiyun Zhang1* , Haosen He2
1.Shandong Women’s University, Jinan 250300, China
2.Wake Forest University,NC27109,United States
*Corresponding Author
This study tests a set of theoretically influential factors of unemployment with a 16-year long panel consisting 32 OECD countries. These factors include government policies, union power, real per capita GDP growth and internet access. Both an OLS and a 2SLS model are estimated to address simultaneity bias. It finds that while expenditure on active labor market programs (ALMP) is negatively associated with the unemployment rate, unemployment benefits, wage bargaining, labor market regulations and hiring firing restrictions are positively associated with the unemployment rate. However, these results are subjected to bias and may not be completely trustworthy.
Influential factors, Unemployment rate, OLS model, 2SLS model
Aiyun Zhang, Haosen He. Testing the Influential Factors of Unemployment in the Developed Worldy. Academic Journal of Business & Management (2020) Vol. 2, Issue 3: 54-67. https://doi.org/10.25236/AJBM.2020.020309.
[1] Abbring, Jaap H., et al. (2005). The Effect of Unemployment Insurance Sanctions on the Transition Rate from Unemployment to Employment. The Economic Journal, vol. 115, no. 505, p. 602–630.
[2] Ahmad, Nisar, et al. (2019). The Effect of Active Labour Market Programmes and Benefit Sanctions on Reducing Unemployment Duration.Journal of Labor Research, vol. 40, no. 2, p. 202–229.
[3] Amable, Bruno, et al. (2011). “The Effect of Employment Protection and Product Market Regulation on Labour Market Performance: Substitution or Complementarity?” Applied Economics, vol. 43, no. 4–6, p. 449–464.
[4] Arni, Patrick, et al. (2013). HOW EFFECTIVE ARE UNEMPLOYMENT BENEFIT SANCTIONS? LOOKING BEYOND UNEMPLOYMENT EXIT. Journal of Applied Econometrics, vol. 28, no. 7, p. 1153–1178.
[5] Boone, Brecht, and Freddy Heylen(2019). Cross-Country Differences in Unemployment: Fiscal Policy, Unions, and Household Preferences in General Equilibrium.Scandinavian Journal of Economics, vol. 121, no. 3, p. 1270–1302.
[6] Card, David, et al. (2010). Active Labour Market Policy Evaluations: A Meta-Analysis. The Economic Journal, vol. 120, no. 548, pp. F452–F477.
[7] Chang, Juin-jen, and Hsiao-wen Hung (2016). Trade Unions, Uemployment, Economic Growth, and Income Inequality.Macroeconomic Dynamics, vol 20: no. 1, pp.404-28.
[8] Fialová, Kamila, and Ondřej Schneider (2009). Labor Market Institutions and Their Effect on Labor Market Performance in the New EU Member Countries. Eastern European Economics, vol. 47, no. 3, pp. 57–83.
[9] https://www.reuters.com/article/us-eurozone-germany-scholz-idUSKCN1J5077.
[10] https://www.hrw.org/world-report/2019.
[11] Kroft, Kory, and Devin G. Pope.(2014). Does Online Search Crowd Out Traditional Search and Improve Matching Efficiency? Evidence from Craigslist. Journal of Labor Economics, vol. 32, no. 2, pp. 259–303.
[12] Kuhn, Peter, and Hani Mansour(2014). Is Internet Job Search Still Ineffective? Economic Journal, vol. 124, no. 581, pp. 1213–1233.