Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/34362 
Year of Publication: 
2007
Series/Report no.: 
IZA Discussion Papers No. 2770
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
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.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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