Employment to Output Elasticities & Reforms towards Flexicurity: Evidence from OECD Countries

Holger Görg, Cecília Hornok, Catia Montagna, George Emeka Onwordi

Research output: Working paper


How do labour market policies influence employment's responsiveness to output fluctuations (employment-output elasticity)? We revisit this question on a panel of OECD countries, which also incorporates the period of the Great Recession. We distinguish between passive and active labour market policies and allow for their interactions, i.e. the policy mix, to play a role. We find that the effects of any single policy change are shaped by the broader existing policy-mix within which it takes place. Finally, we evaluate the effect of a move to 'flexicurity' on the employment-output elasticity in each country
Original languageEnglish
Place of PublicationGermany
PublisherKiel Institute for the World Economy
Number of pages37
ISBN (Electronic)1862–1155
Publication statusPublished - Nov 2018

Publication series

NameKiel Working Paper
No. 2117
ISSN (Electronic)1862–1155

Bibliographical note

This work was supported by the NORFACE ERA-NET (New Opportunities for Research Funding Agency Cooperation in Europe Network) Welfare State Futures Programme, Grant Number 462-14-120. We thank Nils Braakmann, Sebastian Könings, Steve Matusz, Fredrik Sjöholm, John Skåtun, Allan Sørensen and participants of the NORFACE Welfare State Futures Programme "Globalisation, Labour Markets and the Welfare State" final workshop for their valuable comments.


  • employment-output elasticity
  • labour market policy
  • welfare state
  • flexicurity


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