Product market deregulation and the U.S. employment miracle

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Ebell, Monique; Haefke, Christian. Product market deregulation and the U.S. employment miracle. 2002
To cite or link this document: Ebell, Monique Haefke, Christian
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa 2002-12-01
dc.description.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 wage bargaining. Product market competition affects unemployment by two channels: the output expansion effect and a countervailing effect due to a hiring externality. Competition is then linked to barriers to entry. 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. Our quantitative analysis suggests that under individual bargaining, 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.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 930
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.title Product market deregulation and the U.S. employment miracle
dc.type info:eu-repo/semantics/workingPaper 2016-06-04T02:50:51Z
dc.subject.keyword Business Economics and Industrial Organization
dc.subject.keyword Macroeconomics and International Economics
dc.subject.keyword product market competition
dc.subject.keyword barriers to entry
dc.subject.keyword wage bargaining
dc.rights.accessRights info:eu-repo/semantics/openAccess

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