The Role of Product Market Regulations in the Process of Structural Change
By Julián Messina. Social Science Research Network, 2006
144 citations recorded by the source corpus.
The sectoral allocation of labor differs considerably across developed economies, even in the presence of similar patterns of structural change. A general equilibrium model that captures the stylized facts of structural change is presented. In this framework, product market regulations raise barriers to entry that hinder the development of sectors with income elastic demand such as service industries. Thus, the paper suggests that differences in the regulations of product markets might help explaining cross-country differences in the sectoral allocation of employment. Cross-country evidence discussed in the paper shows that this proposition is supported by the data for a sample of OECD countries. Additionally, the model shows that higher service prices and rents in regulated economies reduce labor supply, providing a rationale for the negative association between product market regulations and the employment rate previously found in the literature. JEL Classification: O11, O41, L5
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/eba1d9e6cde536fa387b506ca07459c3db3e6bd9
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- Á. Valentinyi
- Berthold Herrendorf
- Richard Rogerson
- Diego Restuccia
- Tasso Adamopoulos
- D. Gollin
- Pedro H S Bento
- David Lagakos
Citations in the corpus
- Growth and Structural Transformation (2013, background): “Three exceptions that study the effects of labor mobility costs in the context of structural transformation are Nickell et al. (2002), Messina (2006) and Hayashi and Prescott (2008).”
- Employment Effects of Product and Labour Market Reforms: Are There Synergies? (2012, unknown): “This echoes previous results by Boeri et al. (2000), Nicoletti and Scarpetta (2005), Messina (2006), Bassanini and Duval (2006) and Griffith et al. (2007).”
- Structural Change in a Multi-Sector Model of Growth (2007, unknown): “nj =( 1− e) i γ j − γi ¢ ∀i,j 6= m. ( 15 )”