{"id":49129,"date":"2023-11-20T15:46:03","date_gmt":"2023-11-20T14:46:03","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/labor-market-institutions-fiscal-multipliers-and-macroeconomic-volatility\/"},"modified":"2024-04-21T11:57:14","modified_gmt":"2024-04-21T09:57:14","slug":"labor-market-institutions-fiscal-multipliers-and-macroeconomic-volatility","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/49129\/","title":{"rendered":"Labor Market Institutions, Fiscal Multipliers, and Macroeconomic Volatility"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-49129","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"We study empirically how various labour market institutions \u2013 (i) union density, (ii) unemployment benefit remuneration, and (iii) employment protection \u2013 shape fiscal multipliers and output volatility. Our theoretical model highlights that more stringent labour market institutions attenuate both fiscal spending multipliers and macroeconomic volatility. This is validated empirically by an interacted panel vector autoregressive model estimated for 16 OECD countries. The strongest effects emanate from employment protection, followed by union density. While some labor market institutions mitigate the contemporaneous impact of shocks, they, however, reinforce their propagation mechanism. The main policy implication is that stringent labor market institutions render cyclical fiscal policies less relevant for macroeconomic stabilization.","onlinedate":"2022-05-01 00:00:00","lang":"English","publication_series":"CESifo Working Papers","publication_date":"20220501","publication_date_year":"","publication_date_full":false,"publication_num_pages":"64","keywords":"[]","jelcodes":"[]","related_publications":"[]","pdf":null,"zip":null,"link":"https:\/\/www.cesifo.org\/en\/publications\/2022\/working-paper\/labor-market-institutions-fiscal-multipliers-and-macroeconomic","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"","journal":"","publisher":"","invisible":false,"external":true,"embargo_date":null,"types":[208554],"research_groups":[3500],"collaboration":"","persons":[18325,4963,3543],"persons_data":"[{\"personId\":18325,\"personName\":\"Maximilian Boeck\",\"organisationNames\":[]},{\"personId\":4963,\"personName\":\"Jes\u00fas Crespo\",\"organisationNames\":[]},{\"personId\":3543,\"personName\":\"Christian Glocker\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.5 (Yoast SEO v26.5) - 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