Labor-market volatility and financial development in the advanced OECD countries: Does labor market regulation matter? - Université Paris 1 Panthéon-Sorbonne Access content directly
Journal Articles Comparative Economic Studies Year : 2016

Labor-market volatility and financial development in the advanced OECD countries: Does labor market regulation matter?

Thibault Darcillon

Abstract

This article investigates the relationship between financial development and labor market volatility in 15 OECD countries from 1974 to 2007. I argue that financial development should affect corporate governance and then how firms will determine wages and the number of hours worked, especially for low-skilled workers. First, my results indicate that financial development is associated with higher employment and wage volatility, but with no significant differences across skill levels. Second, using a threshold regression model, I show that the increasing-effect of higher financial development on labor-market volatility is larger in countries with more labor market regulation.
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Dates and versions

hal-01248986 , version 1 (29-12-2015)

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  • HAL Id : hal-01248986 , version 1

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Thibault Darcillon. Labor-market volatility and financial development in the advanced OECD countries: Does labor market regulation matter?. Comparative Economic Studies, 2016. ⟨hal-01248986⟩
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