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Education and Training in Europe$
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Giorgio Brunello, Pietro Garibaldi, and Etienne Wasmer

Print publication date: 2007

Print ISBN-13: 9780199210978

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199210978.001.0001

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Training and Labour Market Institutions

Training and Labour Market Institutions

(p.232) 11 Training and Labour Market Institutions
Education and Training in Europe

Giorgia Brunello (Contributor Webpage)

Pietro Garibaldi (Contributor Webpage)

Etienne Wasmer

Oxford University Press

Institutional factors affecting the labour and the product market differ significantly in European countries. Product market competition, for instance, is recognized to be stronger in Anglo-Saxon countries, and employment protection to be higher in Southern European countries. There is extensive literature which investigates how these institutional differences affect unemployment dynamics. The bottom line of this research is that analysing the interaction between institutions and economic shocks helps explain unemployment differences across OECD countries. This chapter reviews empirical literature regarding the question of whether labour and product market institutions affect training incidence and whether they can account for some of the variation in training outcomes observed across European countries. It is argued that most of the existing evidence is not comparative but country-specific, with a strong emphasis on the US and to a lesser extent on the UK. A European perspective is taken by matching data from the European Community Household Panel — a large dataset covering 15 EU countries — with information on time varying institutions. An empirical investigation of the relationship between training incidence and labour and product market institutions is carried out, focusing on cross-country and time series variations in institutions.

Keywords:   European Union, workplace training, OECD countries, labour markets, labour unions, minimum wages, labour contracts

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