Employment Outcomes and the Interaction between Product and Labor Market Deregulation: Are They Substitutes or Complements?
By G. Fiori, G. Nicoletti, S. Scarpetta, F. Schiantarelli. Social Science Research Network, 2007
131 citations recorded by the source corpus.
This paper provides a systematic empirical investigation of the effect of product market liberalization on employment when there are interactions between policies and institutions in product and labor markets. Using panel data for OECD countries over the period 1980-2002, we present evidence that product market deregulation is more effective at the margin when labor market regulation is high. Moreover, there is evidence in our sample that product market deregulation promotes labor market deregulation. We show that these results are mostly consistent with the basic predictions of a standard bargaining model, such as Blanchard and Giavazzi (2003), extended to allow for a richer specification of the fall back position of the union and for taxation.
Subfields: Economics and Econometrics, Public Administration
View Paper: https://www.semanticscholar.org/paper/56e274c803a47a4bff15b348b53da6215a3bab01
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In Economics and Econometrics
- John P. Martin
- Anna Lusardi
- Robert Gatti
- Silvia Ardagna
- S. Scarpetta
- Marc Schiffbauer
- Olivia S. Mitchell
- Tullio Jappelli
In Public Administration
Citations in the corpus
- Employment Effects of Product and Labour Market Reforms: Are There Synergies? (2012, unknown): “…deregulating the product market may be the best way to promote higher employment at the margin.20 20 Note that the result on the sign and significance of the interaction term is robust to using the employment rate for prime age men and women (25–54) as the dependent variable (Fiori et al., 2007).”
- Setting It Right: Employment Protection, Labour Reallocation and Productivity (2011, background): “…the liberalization of temporary contracts to allow firms to better respond to fluctuations of demand and 26 See e.g. Nicoletti and Scarpetta (2006); Fiori et al. (2007) also argue that greater competition in product markets pushed firms to lobby for greater flexibility in hiring and firing…”
- Explaining International Differences in Entrepreneurship: The Role of Individual Characteristics and Regulatory Constraints (2008, background): “11 This is a specifi c defi nition of an entrepreneur that differs from what other papers have used so far (see, for example, Blanchfl ower [2004], Evans and Jovanovic [1989], Hurst and Lusardi [2004], and Gentry and Hubbard [2000]), but as explained next, it is appropriate, given the focus of this ”
- Jobs for Shared Prosperity: Time for Action in the Middle East and North Africa (2013, background): “Fiori et al. (2007) show that employment gains from reducing barriers to entry in product markets are larger when labor market policies are restrictive.”