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Title:Product Market Reforms and Unemployment in Europe PDF Logo
Authors:Gersbach, Hans
Schniewind, Achim
Issue Date:2001
Series/Report no.:IZA Discussion paper series 255
Abstract:In this paper we study how promoting product market competition by reducing mark-ups or by increasing productivity are able to complement labor market reforms. We use a simple general equilibrium model with different types of labor. The bottom-line of the paper is that product market reforms will help to reduce aggregate unemployment under many circumstances even though sectoral unemployment may increase. We also highlight that the mobility of high-skilled workers and the distribution of unemployment across sectors determine whether productivity improvements in one sector affect aggregate unemployment positively or negatively.
Subjects:Product market competition
unemployment
mobility of labor force
political support for reforms
JEL:E24
J60
D58
L13
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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