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Structural reforms for growth: dynamic effects on labor market outcomes using a local projection approach
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This thesis analyzes the effects of structural labor market reforms on employment outcomes,
focusing on how employment protection legislation, active labor market policies, and the labor
tax wedge dynamically influence employment rates. Using local projections and a newly
constructed panel dataset of 38 OECD economies from 1999 to 2018, this approach captures
short- and medium-term responses to policy changes. The results show that stricter
employment protection legislation gradually reduces employment in the medium term, while
active labor market policy reforms only yield temporary gains. The findings provide evidence
on the timing and magnitude of reform impacts, offering insights for policymakers aiming to
promote growth through structural reforms.
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Palavras-chave
Employment outcomes Economic growth Labor market policies Local projections OECD countries Structural reforms