Isolated effects of labor and product market institutions as well as the interaction between both aforementioned … categories on unemployment have been extensively discussed in the empirical literature. However, interaction effects between … individual labor market institutions have been widely neglected, mainly due to the infeasibility to correctly specify the model …

to 2003. More precisely, this paper derives measures for similarity of institutions and structural reforms, and … bilateral data. Our findings indicate a strong instantaneous relationship between both similarity of institutions as well as …