Institutional reforms could slash job destruction and unemployment duration significantly.
The article shows that making changes to certain rules and laws in a country can help reduce the number of jobs lost and shorten how long people are unemployed. By studying data from 20 countries, the researchers found that by making the right reforms, job losses could decrease by 0.05 to 0.25 percentage points, and unemployment periods could be shortened by 10 to 60 days. This could lead to a decrease in the unemployment rate by 0.75 to 5.5 percentage points, depending on where a country starts.