Resource title

Employment Protection and Product Market Regulation

Resource image

image for OpenScout resource :: Employment Protection and Product Market Regulation

Resource description

Product market regulation and employment protection are highly correlated across OECD countries. Using an augmented model of monopolistic competition we show why in countries with more regulated product markets, incumbent workers prefer to protect jobs relatively more. Product market regulation increases the scope for employment protection because firms can bear the cost of employment protection more easily and still break even. Moreover, product market regulation decreases employment so that the workers' outside option becomes relatively worse. This increases the incentive to protect the job.

Resource author

Winfried Koeniger, Andrea Vindigni

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/20120

Resource license

Adapt according to the presented license agreement and reference the original author.