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The employment effects of labor and product markets deregulations and their implications for structural reform

Author: Helge Berger; Stephan Danninger
Publisher: Berlin Freie Univ., Fachbereich Wirtschaftswiss.
Series: Diskussionsbeiträge des Fachbereichs Wirtschaftswissenschaft der Freien Universität Berlin; Volkswirtschaftliche Reihe; Diskussionsbeiträge des Fachbereichs Wirtschaftswissenschaft der Freien Universität Berlin, 2006,10
Edition/Format:   Computer file : EnglishView all editions and formats
Summary:
This study explores the effects of market deregulation on employment growth. Empirical analysis of an OECD country panel (19902004) suggests that lower levels of product and labor market regulation foster employment growth, including through sizable interaction effects. A theoretical framework is developed for evaluating deregulation strategies in the presence of reform costs. Optimal deregulation takes various  Read more...
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Material Type: Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Helge Berger; Stephan Danninger
ISBN: 3938369353 9783938369357
OCLC Number: 836362143
Description: Online-Ressource, 32 S., Text graph. Darst.
Series Title: Diskussionsbeiträge des Fachbereichs Wirtschaftswissenschaft der Freien Universität Berlin; Volkswirtschaftliche Reihe; Diskussionsbeiträge des Fachbereichs Wirtschaftswissenschaft der Freien Universität Berlin, 2006,10
Responsibility: Helge Berger; Stephan Danninger

Abstract:

This study explores the effects of market deregulation on employment growth. Empirical analysis of an OECD country panel (19902004) suggests that lower levels of product and labor market regulation foster employment growth, including through sizable interaction effects. A theoretical framework is developed for evaluating deregulation strategies in the presence of reform costs. Optimal deregulation takes various forms depending on the deregulation costs and the strength of reform interactions. Compared to the first best, decentralized decisionmaking can lead to excessive or insufficient deregulation. Securing the first best requires coordinating deregulation activities across sectors and overcoming the partial perspective of decision makers Product market regulation ; labor market regulation ; employment growth ; policy coordination ; sequencing

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