EconPapers    
Economics at your fingertips  
 

Product market deregulation and the U.S. employment miracle

Monique Ebell and Christian Haefke ()

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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 attributed to product market deregulation. Under a traditional 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. Under a small surplus calibration, however, product market deregulation can account for the entire decline in US trend unemployment over the 1980's and 1990's.

Keywords: Product market competition; barriers to entry; wage bargaining (search for similar items in EconPapers)
JEL-codes: L16 E24 J63 (search for similar items in EconPapers)
Date: 2008-06
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://eprints.lse.ac.uk/19569/ Open access version. (application/pdf)

Related works:
Journal Article: Product Market Deregulation and the U.S. Employment Miracle (2009) Downloads
Working Paper: Product Market Deregulation and the U.S. Employment Miracle (2008) Downloads
Working Paper: Product Market Deregulation and the U.S. Employment Miracle (2008) Downloads
Working Paper: Product Market Deregulation and the U.S. Employment Miracle (2006) Downloads
Working Paper: Product market deregulation and the U.S. employment miracle (2006) Downloads
Working Paper: Product Market Deregulation and the U.S. Employment Miracle (2003) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:19569

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().

 
Page updated 2019-10-20
Handle: RePEc:ehl:lserod:19569