Research interest

In recent years, different international organizations such as the OECD have promoted the deregulation of labor markets as the main solution to reduce unemployment in the EU member states. Empirical studies concluding in favour of this solution typically do not incorporate that (1) the empirical evidence in favor of this hypothesis often relies on weak data, as pointed out in Freeman (2005) and Blanchard (2005), and (2) that reforms usually don’t come without a cost. In the long run, deregulation of the labor market might be beneficial, but more needs to be written on the harm that labor market deregulation brings in the short run. This harm may come in different flavors. For instance, consumer confidence might fall, or competitiveness might erode as an unintended side effect of a labor market reform.

Thus, my research will investigate the strenght of the short term effects of changes in the labour market legislation. Assuming the state being in the function of a caretaker, the Dutch, the Spanish, and the Australian experiences with labor market deregulation will be scrutinized. In addition, a careful look at these countries history will determine whether the existing labour market indicators, on which panel data studies nowadays rely, reflect the "situation on the ground".

Working papers