Labour and Product Market Reforms: A Case for Policy Complementarity

Bruno Amable and Donatella Gatti

No 1190, IZA Discussion Papers from IZA Network @ LISER

Abstract: 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.

Keywords: imperfect competition; efficiency wage; job protection legislation; policy complementarity (search for similar items in EconPapers)
JEL-codes: E24 J41 J63 L13 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2004-06
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published - published in: Industrial and Corporate Change, 2006, 15(1), 101-122

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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp1190

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