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Firing Restrictions, Government Growth, Immigration, and the NAIRU: Evidence from Fifteen OECD Countries
Author(s) -
Hatzinikolaou Dimitris,
Kammas Pantelis
Publication year - 2010
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.2010.00497.x
Subject(s) - nairu , economics , unemployment , social security , inflation (cosmology) , phillips curve , government (linguistics) , immigration , panel data , government expenditure , macroeconomics , labour economics , public finance , econometrics , political science , linguistics , philosophy , physics , theoretical physics , law , market economy
Using a Phillips‐type equation and annual aggregate data from 15 Organization for Economic Cooperation and Development (OECD) countries, we estimate the effects of the following policies on the ‘non‐accelerating inflation rate of unemployment’ (NAIRU): restrictions on firing, growth in government ‘productive’ expenditure, growth in social security benefits, and lax immigration policy. We consider Greece separately, but treat the other 14 countries as a fixed‐effects panel. Two effects seem to be robust to changes in the sample: restrictions on firing and growth in social security benefits raise the NAIRU.