Westudytherelationship between technology and labour regulation using rich annual country-level large panel data. We depart from previous studies by questioning the assumptions oflinearity and cross-sectional independence and exploit recent advancements in semi-nonparametric panel data econometric methods. Alternative proxies for technology as well as various measures of labour regulation are considered. This workrefinespreviousresults byshowingthresholdeffects, nonlinearities and complex interaction effects that are obscured in parametric specifications and that have relevant implications for policy. Our findings also highlight that standard approaches that adopt parametric formulations or do not consider cross-sectional dependence are seriously biased.
Technology, labour regulation, and nonparametric panel data modelling
Musolesi, Antonio
;Nosvelli, Mario
2024
Abstract
Westudytherelationship between technology and labour regulation using rich annual country-level large panel data. We depart from previous studies by questioning the assumptions oflinearity and cross-sectional independence and exploit recent advancements in semi-nonparametric panel data econometric methods. Alternative proxies for technology as well as various measures of labour regulation are considered. This workrefinespreviousresults byshowingthresholdeffects, nonlinearities and complex interaction effects that are obscured in parametric specifications and that have relevant implications for policy. Our findings also highlight that standard approaches that adopt parametric formulations or do not consider cross-sectional dependence are seriously biased.I documenti in SFERA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
