Ebell, MoniqueHaefke, ChristianUniversitat Pompeu Fabra. Departament d'Economia i Empresa2017-07-262017-07-262002-12-01http://hdl.handle.net/10230/507We consider the dynamic relationship between product market entry regulation and equilibrium unemployment. The main theoretical contribution is combining a Mortensen-Pissarides model with monopolistic competition in the goods market and individual wage bargaining. Product market competition affects unemployment via two channels: the output expansion effect and a countervailing effect due to a hiring externality. Competition is then linked to barriers to entry. A calibrated model compares a high-regulation European regime to a low-regulation Anglo-American one. Our quantitative analysis suggests that under individual bargaining, no more than half a percentage point of European unemployment rates can be attributed to entry regulation.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commonsinfo:eu-repo/semantics/workingPaperproduct market competitionbarriers to entrywage bargainingeuropean unemployment puzzleMacroeconomics and International Economicsinfo:eu-repo/semantics/openAccess