Work detail

The effects of labour market institutions on unemployment in the EU

Author: Mgr. Jan Hněvkovský
Year: 2014 - summer
Work type: EEI & EP
Language: English
Pages: 83
Awards and prizes: M.A. with distinction from the Dean of the Faculty of Social Sciences for an excellent state-final examination performance.
Abstract: Abstract
The aim of this thesis is to examine the direct effects of labour market institu-
tions on unemployment rates in the selected EU Members. For this purpose, we
use macroeconomic cross-country, time series analysis for 21 OECD European
members over the 2001-2011 period. The results gained from our empirical ana-
lysis are rather inconclusive over the possibility to explain the development of
European unemployment solely by analysing the effects of labour market insti-
tutions. This finding might as well be caused by the volatile evolution of both
output and unemployment over the observed period. The importance of busi-
ness cycle is confirmed by our results as the measure for the output gap appears
highly significant in every model specification. Unlike the majority of previous
literature, in our estimates the proxies for macroeconomic shocks do not turn
out to be significant. Hence, we decided not to examine mutual interactions
between macroeconomic shocks and institutions.




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