The Political Economy of Employment Deregulation

Vladimir Gimpelson

VOPROSY ECONOMIKI

Abstract: The article discusses the politics of the labor market reform aimed at employment deregulation and decrease in firing costs. Such reform promises to benefit most of the population and is expected to affect positively job creation and aggregate employment. However, any reforms of labor market institutions are extremely complicated in the political aspect. The author discusses two closely interconnected questions: why these reforms are so difficult for politicians and which measures can help in overcoming the existing political constraints.

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Persistent link: http://EconPapers.repec.org/RePEc:nos:voprec:2003-4-6

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