Arbeitspapier
Equilibrium unemployment dynamics in a panel of OECD countries
We focus on the equilibrium unemployment rate as a parameter implied by a dynamic aggregate model of wage- and price setting. The equilibrium unemployment rate depends on institutional labour market institutions through mark-up coefficients. Compared to existing studies, the resulting final equation for unemployment has richer dynamic structure. The empirical investigation is conducted in a panel data framework and uses OECD data up to 2012. We propose to extend the standard estimation method with time dummies to control and capture the effects of common and national shocks by using impulse indicator saturation (WG-IIS) which is not previously used on panel data. WG-IIS robustifies the estimator of the regression coefficients in the dynamic model, and it affects the estimated equilibrium unemployment rates. We find that wage coordination stands out as the most important institutional variable in our data set, but there is also evidence pointing to the tax wedge and the degree of compensation in the unemployment insurance system as drivers of equillibrium unemployment.
- Language
-
Englisch
- Bibliographic citation
-
Series: Memorandum ; No. 22/2013
- Classification
-
Wirtschaft
Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Single Equation Models: Single Variables: Instrumental Variables (IV) Estimation
Model Construction and Estimation
Institutions and the Macroeconomy
General Aggregative Models: Marxian; Sraffian; Kaleckian
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- Subject
-
OECD area unemployment
dynamics, structural breaks
equilibrium unemployment
wage setting
NAIRU
labour market institutions
automatic variable selection
- Event
-
Geistige Schöpfung
- (who)
-
Nymoen, Ragnar
Sparrman, Victoria
- Event
-
Veröffentlichung
- (who)
-
University of Oslo, Department of Economics
- (where)
-
Oslo
- (when)
-
2013
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Nymoen, Ragnar
- Sparrman, Victoria
- University of Oslo, Department of Economics
Time of origin
- 2013
Other Objects (12)
Immigration, growth and unemployment: Panel VAR evidence from OECD countries
Immigration, Growth and Unemployment: Panel VAR Evidence from OECD Countries
The Cyclical Behavior of Equilibrium Unemployment and Vacancies Across OECD Countries
Are Unemployment Rates in OECD Countries Stationary? Evidence from Univariate and Panel Unit Root Tests
Labour market regimes and unemployment in OECD countries
Labour Market Institutions and Unemployment in OECD Countries
Labour Market Institutions and Unemployment in OECD Countries
Labour market regimes and unemployment in OECD countries
Immigration, Unemployment and Growth in the Host Country: Bootstrap Panel Granger Causality Analysis on OECD Countries
Immigration, Unemployment and Growth in the Host Country: Bootstrap Panel Granger Causality Analysis on OECD Countries
Immigration, unemployment and growth in the host country: Bootstrap panel Granger causality analysis on OECD countries
The employment and unemployment of women in OECD countries
Immigration, growth and unemployment: Panel VAR evidence from OECD countries
Immigration, Growth and Unemployment: Panel VAR Evidence from OECD Countries
The Cyclical Behavior of Equilibrium Unemployment and Vacancies Across OECD Countries
Are Unemployment Rates in OECD Countries Stationary? Evidence from Univariate and Panel Unit Root Tests
Labour market regimes and unemployment in OECD countries
Labour Market Institutions and Unemployment in OECD Countries
Labour Market Institutions and Unemployment in OECD Countries
Labour market regimes and unemployment in OECD countries
Immigration, Unemployment and Growth in the Host Country: Bootstrap Panel Granger Causality Analysis on OECD Countries
Immigration, Unemployment and Growth in the Host Country: Bootstrap Panel Granger Causality Analysis on OECD Countries
Immigration, unemployment and growth in the host country: Bootstrap panel Granger causality analysis on OECD countries
The employment and unemployment of women in OECD countries
Immigration, growth and unemployment: Panel VAR evidence from OECD countries
Immigration, Growth and Unemployment: Panel VAR Evidence from OECD Countries
The Cyclical Behavior of Equilibrium Unemployment and Vacancies Across OECD Countries
Are Unemployment Rates in OECD Countries Stationary? Evidence from Univariate and Panel Unit Root Tests
Labour market regimes and unemployment in OECD countries
Labour Market Institutions and Unemployment in OECD Countries
Labour Market Institutions and Unemployment in OECD Countries
Labour market regimes and unemployment in OECD countries
Immigration, Unemployment and Growth in the Host Country: Bootstrap Panel Granger Causality Analysis on OECD Countries
Immigration, Unemployment and Growth in the Host Country: Bootstrap Panel Granger Causality Analysis on OECD Countries
Immigration, unemployment and growth in the host country: Bootstrap panel Granger causality analysis on OECD countries