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| Author: | Griffith, R. Harrison, R. Macartney, G. |
| Title: | Product market reforms, labour market institutions and unemployment |
| Journal: | Economic Journal
2007 : MAR, VOL. 117:519, p. C142-C166 |
| Index terms: | labour markets reforms unemployment |
| Language: | eng |
| Abstract: | This article analyses the impact of product market competition on unemployment, and how this depends on labour market institutions. Theoretically, both companies with market power and unions with bargaining power are constrained in their behaviour by the elasticity of demand in the product market. Differential changes in regulations across EU countries over the 1980s and 1990s are used to identify the effects of competitions. It is found that increased competition reduces unemployment, more so in countries with labour market institutions that increase worker bargaining power. |
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