Working Paper: NBER ID: w11286
Authors: Richard B. Freeman
Abstract: The debate over the influence of labour market flexibility on performance is unlikely to be settled by additional studies using aggregate data and making cross-country comparisons. While this approach holds little promise, micro-analysis of workers and firms and increased use of experimental methods represent a path forward. Steps along this path could help end the current 'lawyer's case' empiricism in which priors dominate evidence.
Keywords: No keywords provided
JEL Codes: J0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Strong priors (C11) | belief in detrimental effects of labour institutions on economic performance (J08) |
| belief in detrimental effects of labour institutions on economic performance (J08) | biased interpretations of empirical evidence (D91) |
| Insufficiently robust aggregate data (C80) | inability to provide conclusive evidence against priors (D80) |
| Current state of empirical analysis (C59) | stalemate in the debate (D74) |
| Micro-level studies and simulations (C91) | improved quality of evidence (C90) |