Employment Outcomes and the Interaction between Product and Labor Market Deregulation: Are They Substitutes or Complements?

摘要: This paper provides a systematic empirical investigation of the effect product market liberalization on employment when there are interactions between policies and institutions in labor markets. Using panel data for OECD countries over period 1980-2002, we present evidence that deregulation is more effective at margin regulation high. Moreover, our sample promotes deregulation. We show these results mostly consistent with basic predictions standard bargaining model, such as Blanchard Giavazzi (2003), extended to allow richer specification fall back position union taxation.