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Be More Flexible?: The Effect of Labor Market Flexibility on Unemployment in Developing Countries

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Abstract:

With the expansion of the neoliberal economic order, the flexible labor market paradigm has questioned the efficiency of the welfare state labor market institutions. Furthermore, the flexible labor market policy has been recommended as a universal solution to unemployment issues in developing countries. This essay poses a challenge to such a free-market orthodox view that a more flexible labor market system contributes to improving unemployment conditions in developing countries. To this end, this study utilizes the Panel Corrected Standard Error(PCSE) regression model and Generalized Least Square (GLS) Random Effect model with the time-series cross-sectional (TSCS) dataset of ten OECD countries. Contrary to the orthodox view, the empirical findings of this research suggest that in developing countries flexible labor market policy can result in higher unemployment rates.

Most Common Document Word Stems:

market (135), labor (132), unemploy (103), exibl (79), rate (73), countri (69), variabl (56), employ (54), develop (53), effect (49), model (43), studi (43), oecd (38), p (36), econom (33), result (33), increas (27), work (26), higher (24), regress (24), 2004 (23),

Author's Keywords:

Globalization; Labor Market Flexibility; Unemployment; Developing Countries
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Name: Midwest Political Science Association 67th Annual National Conference
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http://www.indiana.edu/~mpsa/


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MLA Citation:

CHUNG, JAEWOOK. "Be More Flexible?: The Effect of Labor Market Flexibility on Unemployment in Developing Countries" Paper presented at the annual meeting of the Midwest Political Science Association 67th Annual National Conference, The Palmer House Hilton, Chicago, IL, Apr 02, 2009 <Not Available>. 2009-11-11 <http://www.allacademic.com/meta/p363065_index.html>

APA Citation:

CHUNG, J. , 2009-04-02 "Be More Flexible?: The Effect of Labor Market Flexibility on Unemployment in Developing Countries" Paper presented at the annual meeting of the Midwest Political Science Association 67th Annual National Conference, The Palmer House Hilton, Chicago, IL Online <APPLICATION/PDF>. 2009-11-11 from http://www.allacademic.com/meta/p363065_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: With the expansion of the neoliberal economic order, the flexible labor market paradigm has questioned the efficiency of the welfare state labor market institutions. Furthermore, the flexible labor market policy has been recommended as a universal solution to unemployment issues in developing countries. This essay poses a challenge to such a free-market orthodox view that a more flexible labor market system contributes to improving unemployment conditions in developing countries. To this end, this study utilizes the Panel Corrected Standard Error(PCSE) regression model and Generalized Least Square (GLS) Random Effect model with the time-series cross-sectional (TSCS) dataset of ten OECD countries. Contrary to the orthodox view, the empirical findings of this research suggest that in developing countries flexible labor market policy can result in higher unemployment rates.

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Associated Document Available Midwest Political Science Association 67th Annual National Conference

Document Type: application/pdf
Page count: 21
Word count: 7848
Text sample:
Be More Flexible?: The Effect of Labor Market Flexibility on Unemployment in Developing Countries Jaewook Chung Department of Political Science Arizona State University April 2 2009 Abstract With the expansion of the neoliberal economic order the flexible labor market paradigm has ques- tioned the efficiency of the welfare state labor market institutions. Furthermore the flexible labor market policy has been recommended as a universal solution to unemployment issues in developing countries. This essay poses a challenge to such a
Market Rigidities: At the Root of Unemployment in Europe.” The Journal of Economic Perspectives 11(3):37–54. Siebert Horst. 2006. “The Growth Performance of Developing Countries in the Last Thirty Years. Who gained? Who Lost?”. Kiel Working Paper No. 1280. Kiel Institute for World Eco- nomics. Stanford Jim. 2004. Testing the Flexibility Paradigm: Canadian Labor Market Performance in International Contex. In Fighting Unemployment: The Limits of Free Market Orthodoxy ed. David Howell. Cary NC: Oxford University Press pp. 119–155. Young David.


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