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Labour Market Institutions Without Blinders: The Debate over Flexibility and Labour Market Performance

26 Pages Posted: 2 Jun 2005  

Richard B. Freeman

National Bureau of Economic Research (NBER); University of Edinburgh - School of Social and Political Studies; Harvard University; London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP)

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

Freeman, Richard B., Labour Market Institutions Without Blinders: The Debate over Flexibility and Labour Market Performance (May 2005). NBER Working Paper No. W11286. Available at SSRN: https://ssrn.com/abstract=716282

Richard B. Freeman (Contact Author)

National Bureau of Economic Research (NBER) ( email )

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University of Edinburgh - School of Social and Political Studies ( email )

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Harvard University ( email )

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