Institutional Reform Could Slash Job Destruction and Unemployment Duration
The article shows that making changes to certain rules and laws in a country can help reduce job losses and 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 unemployment rates by 0.75 to 5.5 percentage points, depending on where a country starts.