Resource title

Product Market Reforms and Unemployment in Europe

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Resource description

In this paper we study how promoting product market competition by reducing mark-ups or by increasing productivity are able to complement labor market reforms. We use a simple general equilibrium model with different types of labor. The bottom-line of the paper is that product market reforms will help to reduce aggregate unemployment under many circumstances even though sectoral unemployment may increase. We also highlight that the mobility of high-skilled workers and the distribution of unemployment across sectors determine whether productivity improvements in one sector affect aggregate unemployment positively or negatively.

Resource author

Hans Gersbach, Achim Schniewind

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/21104

Resource license

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