Labour market institutions and country-level consumption fluctuations: OECD evidence

Content Provider	Semantic Scholar
Author	Prete, Anna Lo
Copyright Year	2011
Abstract	This paper documents that the configuration of national labour markets is empirically relevant to the response of country-level consumption to country-specific income shocks when individuals within each country differ in their ability to access private markets. In a panel of 15 OECD countries observed over the 1971-2003 period, interactions of macroeconomic shocks with labour and credit market indicators are relevant to aggregate consumption behaviour, and robustly significant in a variety of specifications, with or without country effects and time-varying institutional indicators. Since the institutions considered would be redundant in a representative agent economy, their relevance to aggregate consumption can be interpreted in terms of within-country risk sharing provided by national institutions meant to reallocate risks that cannot be fully diversified on financial markets, such as labour income fluctuations.
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://www.iza.org/conference_files/ESSLE2011/lo%20prete_a3344.pdf
Alternate Webpage(s)	http://conference.iza.org/conference_files/ESSLE2011/lo%20prete_a3344.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article