Do labor market rigidities matter for business cycles? Yes they do
Stefano Gnocchi and Evi Pappa
BSE Working Paper: 411
Keywords: Labor market institutions, Business cycles, OECD countries, rank sum test, active labor market policies
JEL codes: E32, E6, J01, J08
Abstract
We study whether labor market institutions affect the volatility and correlations of macroeconomic variables for a sample of 20 OECD countries. Labor market rigidities are characterized with a number of indicators
