What Makes Labour Markets Resilient During Recessions?

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This chapter analyses the impact of selected labour market policies and institutions for labour market resilience, defined as the extent to which labour markets weather economic downturns with limited social costs. One of the main insights that emerges from this chapter is that policies and institutions that are conducive to good structural labour market outcomes also tend to be good for labour market resilience. In particular, co‐ordinated bargaining institutions can contribute to both good structural performance and labour market resilience, while the intensive use of temporary contracts tends to be associated with both weaker structural outcomes and less resilience.

Document Type: Review Article

Publication date: July 1, 2012

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