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Gatti, Donatella
Amable, Bruno
Year of Publication: 
Series/Report no.: 
IZA Discussion Papers 1190
This paper is a contribution to the debate on policy complementarity in relation to deregulation in the product and labour markets. We develop a model of dynamic efficiency wages and monopolistic competition. Whereas most of the literature points toward the gains associated to an increase in product market competition coupled with an increased flexibility of the labour market, we show that even when more product market competition is the policy recommendation, it should be accompanied by an increase in job security.
policy complementarity
job protection legislation
efficiency wage
imperfect competition
Document Type: 
Working Paper

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