Does democracy and government policy affect labor market outcomes in CEE countries?

Eftimoski, Dimitar and Josifoska, Antonija and Josheski, Dushko (2015) Does democracy and government policy affect labor market outcomes in CEE countries? Journal of Sustainable Development, 5 (12). pp. 5-23. ISSN 1857-8519

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In this paper, in a sample of Central and Eastern European countries (Albania, Bulgaria, Czech Republic, Estonia, Hungary, Macedonia, Moldova, Romania, Russian Federation, Slovak Republic, Slovenia, and Ukraine) we investigate the effects of: 1) democracy (measured by democracy indices); 2) government related variables and 3) other selected macroeconomic variables, on labor market outcomes. As labor market outcomes we use the following variables: unemployment rate, long-term unemployment rate, employment to population ratio, and average annual hours worked. As independent government related variables we use the following: government consumption (lagged), tax revenues as percentage of GDP (lagged), Herfindahl index of government (lagged). For the level of democracy we use following indices: Freedom house political rights and Civil liberties index (lagged), worker rights by CIRI human rights data project and Physical integrity rights index (lagged). Finally (regarding the independent macroeconomic variables), we estimate the effects of economic growth, inflation, and gross capital formation, on labor market outcomes. The empirical findings are based on two econometric techniques: The Seemingly Unrelated Regressions (SUR), and the General Method of Moments (GMM).

Item Type: Article
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Tourism and Business Logistics
Depositing User: Dusko Josevski
Date Deposited: 19 Jun 2015 09:33
Last Modified: 19 Jun 2015 09:33

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