Product and labour market regulations, production prices, wages and productivity

Gilbert Cette, Jimmy Lopez () and Jacques Mairesse

No 2015-028, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: This study is an attempt to evaluate the effects of product and labour market regulations on industry productivity through their various impacts on changes in production prices and wages. In a first stage, the estimation of a regression equation on an industry*country panel, with controls for country*industry and country*year fixed effects, show that multi-factor productivity is negatively and significantly influenced by both indicators of industrial prices from same industry and weighted average of industrial prices from other industries, and by indicators of country wages weighted by industry labour shares for low and high skilled workers. In a second stage, an economic policy simulation of the implications of these results on the basis of their calibration by the OECD product and labour market anti-competitive regulation indicators suggests that nearly all countries could expect sizeable gains in multifactor productivity from deregulation reforms.

Keywords: Productivity; market imperfections; anti-competitive regulations; rents (search for similar items in EconPapers)
JEL-codes: C23 L16 L50 O43 O47 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Product and Labour Market Regulations, Production Prices, Wages and Productivity (2016)
Working Paper: Product and Labour Market Regulations, Production Prices, Wages and Productivity (2016)
Working Paper: Product and Labor Market Regulations, Production Prices, Wages and Productivity (2014)
Working Paper: Product and Labor Market Regulations, Production Prices, Wages and Productivity (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2015028

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