This paper aims to estimate the impact of economic and financial crises on the\nunemployment rate in the European Union, taking also into consideration the institutional\nspecificities, since unemployment was the main channel through which the economic and\nfinancial crisis influenced the social developments.. In this context, I performed two\ninstitutional clusters depending on their inclusive or extractive institutional features and, in\neach cases, I computed the crisis effect on unemployment rate over the 2003-2017 period.\nBoth models were estimated by using Panel Estimated Generalized Least Squares method,\nand are weighted by Period SUR option in order to remove, in advance the possible\ninconveniences of the models. The institutions proved to be a relevant criterion that drives\nthe impact of economic and financial crises on the unemployment rate, highlighting that\ncountries with inclusive institutions are less vulnerable to economic shocks and are more\nresilient than countries with extractive institutions. The quality of institutions was also\nfound to have a significant effect on the response of unemployment rate to the dynamic of\nits drivers.
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