Product Market Deregulation and the U.S. Employment Miracle

Monique Ebell () and Christian Haefke ()

Review of Economic Dynamics, 2009, vol. 12, issue 3, pages 479-504

Abstract: We consider the dynamic relationship between product market entry regulation and equilibrium unemployment. The main theoretical contribution is combining a job matching model with monopolistic competition in the goods market and individual bargaining. We calibrate the model to US data and perform a policy experiment to assess whether the decrease in trend unemployment during the 1980's and 1990's could be directly attributed to product market deregulation. Under our baseline calibration, our results suggest that a decrease of less than two-tenths of a percentage point of unemployment rates can be attributed to product market deregulation, a surprisingly small amount. (Copyright: Elsevier)

Keywords: Product market competition; Barriers to entry; Wage bargaining (search for similar items in EconPapers)
JEL-codes: E24 J63 L16 O00 (search for similar items in EconPapers)
Date: 2009
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Working Paper: Product Market Deregulation and the U.S. Employment Miracle (2008)
Working Paper: Product Market Deregulation and the U.S. Employment Miracle (2006)
Working Paper: Product Market Deregulation and the U.S. Employment Miracle (2008)
Working Paper: Product Market Deregulation and the U.S. Employment Miracle (2006)
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