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How do labour laws affect unemployment and the labour share of national income? The experience of six OECD countries, 1970–2010

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Article
H

Deakin, Simon ; Malmberg, Jonas ; Sarkar, Prabirjit

International Labour Review

2014

153

1

March

1-27

equal rights ; history ; labour law ; labour legislation ; unemployment ; workers rights

France ; Germany ; Japan ; Sweden ; United Kingdom ; USA

Unemployment

http://dx.doi.org/10.1111/j.1564-913X.2014.00195.x

English

Bibliogr.

"Using longitudinal data on labour law in France, Germany, Japan, Sweden, the United Kingdom and the United States over the period 1970–2010, the authors estimate the impact of labour regulation on unemployment and the labour share of national income. Their dynamic panel data analysis distinguishes between the short-run and long-run effects of regulatory change. They find that worker-protective labour laws in general have no consistent relationship to unemployment but are positively correlated with labour's share of national income. Laws specifically relating to working time and employee representation are found to have beneficial effects on both efficiency and distribution thus proxied. "

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