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The Institutional Roots of Post-War European Economic Under-performance - A Regional Approach

Enflo, Kerstin LU (2011) In European Review of Economic History 15(02). p.329-355
Abstract (Swedish)
Abstract in Undetermined

This article investigates which institutions and policies were related to the increase in European unemployment since 1970 and the productivity stagnation since the mid 1990s. By using data for 88 regions in nine European countries, national policies and institutions are analysed in a fixed-effects panel-data model to detect their relative importance after controlling for unobservable regional factors. The main finding is that institutions only started to matter after the oil crisis. The strongest institutional effects on employment came from the net reservation wages and employment protection laws. The institutional effects on productivity were mainly channelled through the employment productivity... (More)
Abstract in Undetermined

This article investigates which institutions and policies were related to the increase in European unemployment since 1970 and the productivity stagnation since the mid 1990s. By using data for 88 regions in nine European countries, national policies and institutions are analysed in a fixed-effects panel-data model to detect their relative importance after controlling for unobservable regional factors. The main finding is that institutions only started to matter after the oil crisis. The strongest institutional effects on employment came from the net reservation wages and employment protection laws. The institutional effects on productivity were mainly channelled through the employment productivity trade-off. By restricting the supply of labour, these effects were positive on productivity in the short run. However, the article shows that the long-run effects were negative and that there may be institutional roots to the European productivity slow-down in the 1990s. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
European Review of Economic History
volume
15
issue
02
pages
329 - 355
publisher
Cambridge University Press
external identifiers
  • wos:000291607700006
  • scopus:79958849416
ISSN
1474-0044
DOI
10.1017/S1361491611000013
language
English
LU publication?
yes
id
27cfa5f5-448c-48a6-b388-14936ad19e73 (old id 1759247)
alternative location
http://journals.cambridge.org/repo_A82oVw9H
date added to LUP
2011-01-10 12:36:58
date last changed
2017-01-01 03:01:57
@article{27cfa5f5-448c-48a6-b388-14936ad19e73,
  abstract     = {<b>Abstract in Undetermined</b><br/><br>
This article investigates which institutions and policies were related to the increase in European unemployment since 1970 and the productivity stagnation since the mid 1990s. By using data for 88 regions in nine European countries, national policies and institutions are analysed in a fixed-effects panel-data model to detect their relative importance after controlling for unobservable regional factors. The main finding is that institutions only started to matter after the oil crisis. The strongest institutional effects on employment came from the net reservation wages and employment protection laws. The institutional effects on productivity were mainly channelled through the employment productivity trade-off. By restricting the supply of labour, these effects were positive on productivity in the short run. However, the article shows that the long-run effects were negative and that there may be institutional roots to the European productivity slow-down in the 1990s.},
  author       = {Enflo, Kerstin},
  issn         = {1474-0044},
  language     = {eng},
  number       = {02},
  pages        = {329--355},
  publisher    = {Cambridge University Press},
  series       = {European Review of Economic History},
  title        = {The Institutional Roots of Post-War European Economic Under-performance - A Regional Approach},
  url          = {http://dx.doi.org/10.1017/S1361491611000013},
  volume       = {15},
  year         = {2011},
}