Labor market institutions around the world
The paper documents the large cross-country differences in labor institutions that make them a candidate explanatory factor for the divergent economic performance of countries and reviews what economists have learned about the effects of these institutions on economic outcomes. It identifies three ways in which institutions affect economic performance: by altering incentives, by facilitating efficient bargaining, and by increasing information, communication, and trust. The evidence shows that labor institutions reduce the dispersion of earnings and income inequality, which alters incentives, b... Show more
Authors: Freeman, Richard B.
Published: Cambridge, Massachusetts, National Bureau of Economic Research, 2007
Resource type: Report, paper or authored book
Physical description: 35 p.
Access item: http://www.nber.org/papers/w13242.pdf
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