Article ID Journal Published Year Pages File Type
5059180 Economics Letters 2014 15 Pages PDF
Abstract
Using a panel of 17 countries for 1978-2009, we find that tax-driven consolidations increase unemployment by 0.25 percentage points. Labour market flexibility mitigates this: a one-point rise in the flexibility index reduces youth (long-term) unemployment by 0.6-0.7 (1.8-2.2) percentage points.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Fiscal adjustments, labour market flexibility and unemployment
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