Research surveys

How Labor Market Institutions Affect Job Creation and Productivity Growth – An Update

IZA World of Labor, January, 2020

Author(s): Magnus Henrekson

Economic growth requires factor reallocation across firms and continuous replacement of technologies. Labor market institutions influence economic dynamism by their impact on the supply of a key factor, skilled workers to new and expanding firms, and the shedding of workers from declining and failing firms. Growth-favoring labor market institutions include portable pension plans and other job tenure rights, health insurance untied to the current employer, individualized wage-setting, and public income insurance systems that encourage mobility and risk-taking in the labor market.​

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Reference:

Henrekson, Magnus (2020), "How Labor Market Institutions Affect Job Creation and Productivity Growth – An Update". IZA World of Labor 1(January), 1–10. ​

Magnus Henrekson

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Ph: +46 (0)8 665 4502
magnus.henrekson@ifn.se

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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