Fonseca, Raquel; Patureau, Lise; Sopraseuth, Thepthida - RAND - 2007
This paper examines the impact of labor market institutions (LMI) on business cycle (BC) synchronization. The authors … synchronized cycles. In particular, disparity in tax wedges yields lower GDP comovement. Besides, interactions between labor market … institutions do matter, as they are found to affect the effect of tax wedge divergence on BC synchronization. Their overall results …