Author(s):
Addison, John T. 
; Teixeira, Paulino
Date: 1999
Persistent ID: http://hdl.handle.net/10316/11925
Origin: Estudo Geral - Universidade de Coimbra
Document details
Is Portugal Really so Arteriosclerotic? Results from a Cross-Country Analysis o...
Description
Summary measures of the overall strictness of a country’s employment protection laws have proven popular constructs in cross-country studies of the covariation of labour market institutions and macroeconomic outcomes. Portugal occupies an unenviable position in the international rankings. We critique this reputation in two ways: first, by offering a modicum of corrective institutional detail; and, second, via a detailed analysis of the process of labour adjustment in Portugal, benchmarked to the experience of Germany, Spain, and the U.K. Our error-correction model indicates that Portugal has a very high speed of adjustment to deviations from the long-run employment output equilibrium. More in accord with received wisdom is the very smooth adjustment mechanism of the U.K.
Summary measures of the overall strictness of a country’s employment protection laws have proven popular constructs in cross-country studies of the covariation of labour market institutions and macroeconomic outcomes. Portugal occupies an unenviable position in the international rankings. We critique this reputation in two ways: first, by offering a modicum of corrective institutional detail; and, second, via a detailed analysis of the process of labour adjustment in Portugal, benchmarked to the experience of Germany, Spain, and the U.K. Our error-correction model indicates that Portugal has a very high speed of adjustment to deviations from the long-run employment output equilibrium. More in accord with received wisdom is the very smooth adjustment mechanism of the U.K.
Document Type
Research paper
Language English
Language English
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