Labour and product market reforms
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Labour and product market reforms a case for policy complementarity by Bruno Amable

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Published by IZA in Bonn, Germany .
Written in English


  • Deregulation.,
  • Labor market.,
  • Job security.

Book details:

Edition Notes

Statementby Bruno Amable, Donatella Gatti.
SeriesDiscussion paper ;, no. 1190, Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;, no. 1190
ContributionsGatti, Donatella.
LC ClassificationsHD5701
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL3478878M
LC Control Number2005619104

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The Macroeconomic Effects of Labor and Product Market Reforms in Morocco This paper studies the macroeconomic effects and sequencing of (LMRs) and product (PMRs) market reforms in Morocco. It finds that introducing LMRs and PMRs simultaneously would add about percentage points (pp) of GDP growth and reduce unemployment by about pp after five years. About the Book Post economic reform period, in response to the strident demands of employers, the central and the state governments have undertaken several labour law and governance reforms in trickles. Predictably, trade unions have been opposing them. Using panel data for OECD countries over the period –, we present evidence that product market deregulation is more effective at the margin when labour market regulation is high. The data also suggest that product market liberalisation may promote employment‐enhancing labour market by: The theoretical case for labor and product market reforms has been laid out by an extensive literature that has highlighted the long-term gains from structural reforms (e.g. Blanchard and Giavazzi, ), but far less is known about their dynamic impact, and virtually nothing about whether that short-term impact varies depending on the economy’s business cycle position or the ability of macroeconomic .

  Labor and Product Market Reforms in Advanced Economies: Fiscal Costs, Gains, and Support. Author/Editor: Angana Banerji ; Valerio Crispolti ; Era Dabla-Norris ; Romain A Duval ; Christian H Ebeke ; Davide Furceri ; Takuji Komatsuzaki ; Tigran Poghosyan. Publication Date: Ma Electronic Access. In other words, two-tier reforms are a viable strategy to engineer reforms in order to make them politically viable in the labor market (Saint-Paul, ), but not in the product market. Another fact highlighted by comparing Tables 9 and 4 is that many reforms occur at higher than yearly frequencies or are not, in any event, captured by the. Removing product market regulations that stifle competition can reduce labour income inequality by boosting employment. The empirical evidence for the link between product market reform and the dispersion of earnings is rather mixed. Policies that foster the integration of immigrants and fight all forms of discrimination reduce inequality.   Labour market reforms involve policies to make labour markets more flexible e.g. reduce the power of trades unions, reduce unemployment benefits and reduce cost of firing workers. Product market reforms include policies to make firms more competitive, for example privatisation may encourage efficiency, a stronger competition policy should reduce the power of Monopolies.

wages equal the marginal product of labor. We show that wages are determined by demand and supply factors and by elasticities in a simple two-skill-types labor market. Institutions can matter too. Next, we present a simple version of the Burdett-Mortensen IER model of labor market . Labour market institutions are deemed to have a great influence on the level and structure of employment. This holds for regulation on employment protection, minimum wages or tax/benefit systems as well as active labour market policies. This is why policy makers implement labour market reforms in order to stimulate job creation. Romain Duval and Davide Furceri, The Effects of Labor and Product Market Reforms: The Role of Macroeconomic Conditions and Policies, IMF Economic Review, /s, 66, 1, (), (). Crossref. Silvia Fedeli, Vitantonio Mariella. Book Review – The Political Economy of Labour Market Reforms: Greece, Turkey and the Global Economic Crisis.