This paper explores how oil price windfalls impact labor market regulation across 83 countries from 1970 to 2014.
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- DOI
- http://dx.doi.org/10.22617/WPS240528-2
- Dimensions
- 8.5x11
- ISSN
- 2313-6537(print) 2313-6545(PDF)
- Pages
- 12
- Published in
- Philippines
- SKU
- WPS240528-2
- pages
- 54
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Table of Contents
- Abstract 4
- I. Introduction 5
- II. Dataset 9
- A. Employment Protection Legislation Data 10
- B. Windfalls Data 12
- C. Other Data 13
- III. Econometric Specifications 13
- A. Random and Fixed Effects Models 13
- B. Local Projections 15
- IV. Baseline Results 17
- A. Short-run Effects 17
- B. Medium-run Effects 18
- C. Effects of Positive and Negative Windfalls 18
- V. Channels 23
- A. Conceptual Framework 23
- B. The Responses of Macroeconomic Conditions 26
- C. Probability of a Systemic Banking Crisis 28
- D. Case Studies 29
- VI. Conclusion 32
- Figures and Tables 35
- Figure 1: Evolution of Employment Protection Legislation over Time 35
- Figure 2: Frequency of Reforms over Time 36
- Figure 3: Dynamic Effects of Oil Price Windfalls on the Employment Protection Legislation Index 37
- Figure 4: Asymmetric Effects of Oil Price Windfalls on the Employment Protection Legislation Index 38
- Figure 5: Differential Effects of Positive and Negative Oil Price Windfalls 39
- Figure 6: Robustness Check on Country Sample 40
- Figure 7: Robustness Check on OPEC Countries 41
- Figure 8: Robustness Check on Lag Specification 42
- Figure 9: Effects of New Oil Discoveries on Employment Protection Legislation 43
- Figure 10: Effects of Oil Price Windfalls on Employment Protection Legislation—By Income Level 44
- Figure 11: Medium-Term Effects of Oil Price Windfalls on Employment Protection Legislation Depending on the Level of Autocracy/Democracy (Interaction Model) 45
- Figure 12: Effects of Agricultural Commodities Price Windfalls on Employment Protection Legislation 46
- Table 1: Descriptive Statistics of Employment Protection Legislation Index 47
- Table 2: Descriptive Statistics of Oil Price Windfalls 47
- Table 3: Effect of Oil Price Windfalls on Changes in Employment Protection Legislation 48
- Table 4: Effects of Oil Price Windfalls on Various Dependent Variables 49
- Table 5: Effects of Positive and Negative Oil Price Windfalls on a Systemic Banking Crisis Probability 50
- Table 6: Marginal Effects of Positive and Negative Oil Price Windfalls on a Systemic Banking Crisis Probability 51
- References 52
