Labour Market Institutions Without Blinders: The Debate Over Flexibility and Labour Market Performance
26 Pages Posted: 2 Jun 2005
Date Written: May 2005
Abstract
The debate over the influence of labour market flexibility on performance is unlikely to be settled by additional studies using aggregate data and making cross-country comparisons. While this approach holds little promise, micro-analysis of workers and firms and increased use of experimental methods represent a path forward. Steps along this path could help end the current 'lawyer's case' empiricism in which priors dominate evidence.
JEL Classification: J0
Suggested Citation: Suggested Citation
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