Institutional Reforms and Age-Graded Labour Market Inequalities in Europe

Abstract

This article examines how institutional change affects age-based labour market inequalities in Europe. We focus on the impact of labour regulation and of wagesetting institutions on the male population aged 25–54. Age-graded labour market inequalities within this group of prime-age individuals are hitherto under-researched. We estimate country panel regressions using data from the European Union Labour Force Survey and time-series data on institutional change for the years 1992– 2007. The results present evidence that employment protection and the regulation of temporary work affect age-based inequality dynamics, while union strength has positive employment effects on all agegroups.