Standard economic analysis holds that labor market rigidities are harmful
for job creation and typically increase unemployment. But many orthodox
reforms of the labor market have proved difficult to implement because of
political opposition. For these reasons it is important to explain why we
observe such regulations. In this paper I outline a theory of how they
may arise and why they fit together. This theory is fully developed in a
forthcoming book (Saint-Paul (2000)), to which the reader is referred ...
Standard economic analysis holds that labor market rigidities are harmful
for job creation and typically increase unemployment. But many orthodox
reforms of the labor market have proved difficult to implement because of
political opposition. For these reasons it is important to explain why we
observe such regulations. In this paper I outline a theory of how they
may arise and why they fit together. This theory is fully developed in a
forthcoming book (Saint-Paul (2000)), to which the reader is referred for
further details.
+
