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Identifying asymmetric effects of labor market reforms

Gehrke, Britta ; Weber, Enzo



Abstract

This paper proposes a novel approach to identify structural long-term driving forces of the labor market and their short-run state-dependent effects. Based on search and matching theory, our empirical model extracts these driving forces within an unobserved components approach. We relate changes in the labor market structures to reforms that enhance the flexibility of the labor market in ...

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