The impact of equity markets and corporate governance on labour market flexibility

Drawing from various literatures, this article explores links between equity markets and labour market flexibility. Various data sources are used to test relationships for a set of OECD countries, controlling for other likely influences on flexibility such as government and industrial relations institutions. The results are generally supportive as regards employment flexibility: equity market trading activity is associated with shorter job tenure, higher activity rates, and greater employment change over the cycle. However, the relationship between equity markets and pay flexibility is less statistically robust to the addition of controls.

How many processes underline category-based induction? Effect of conclusion specificity and cognitive ability

Two studies investigated participants' sensitivity to the amount and diversity of the evidence when reasoning inductively about categories. Both showed that participants are more sensitive to characteristics of the evidence for arguments with general rather than specific conclusions. Both showed an association between cognitive ability and sensitivity to these evidence characteristics, particularly when the conclusion category was general. These results suggest that a simple associative process may not be sufficient to capture some key phenomena of category-based induction. They also support the claim that the need to generate a superordinate category is a complicating factor in category-based reasoning and that adults' tendency to generate such categories while reasoning has been overestimated.