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The Impact of Labor Market Regulations

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Author Info
Squire, Lyn
Suthiwart-Narueput, Sethaput

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Abstract

This article investigates the impact of labor market regulations in a setting with incomplete compliance. It takes as its starting point the limited evidence regarding the distortionary costs of labor market regulations and argues that there may exist natural limits to the efficiency losses engendered by such regulations. The article reviews some stylized facts regarding labor market behavior, presents an analytical model that may explain such behavior, and provides a checklist for assessing the distortionary impact of regulations such as minimum wages. Copyright 1997 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal World Bank Economic Review.

Volume (Year): 11 (1997)
Issue (Month): 1 (January)
Pages: 119-43
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Handle: RePEc:oup:wbecrv:v:11:y:1997:i:1:p:119-43

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gelb, A & Knight, John B & Sabot, R H, 1991. "Public Sector Employment, Rent Seeking and Economic Growth," Economic Journal, Royal Economic Society, vol. 101(408), pages 1186-99, September. [Downloadable!] (restricted)
  2. Alida Castillo Freeman & Richard B. Freeman, 1991. "Minimum Wages in Puerto Rico: Textbook Case of a Wage Floor?," NBER Working Papers 3759, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. repec:idb:wpaper:1022 is not listed on IDEAS
  2. repec:idb:wpaper:1036 is not listed on IDEAS
  3. César Calderón & Alberto Chong & Rodrigo Valdés, 2004. "Normativa del mercado laboral y desigualdad del ingreso: elementos de juicio de un grupo de países," RES Working Papers 4376, Inter-American Development Bank, Research Department. [Downloadable!]
  4. Rémi Bazillier & Nicolas Sirven, 2006. "Les normes fondamentales du travail contribuent-elles à réduire les inégalités ?," Documents de travail 123, Centre d'Economie du Développement de l'Université Montesquieu Bordeaux IV. [Downloadable!]
    Other versions:
  5. Forteza, Alvaro & Rama, Martin, 2001. "Labor market"rigidity"and the success of economic reforms across more than one hundred countries," Policy Research Working Paper Series 2521, The World Bank. [Downloadable!]
    Other versions:
  6. Derk Bienen, 2002. "Mindestlohnreformen in Südamerika – ökonomische Rechtfertigung und praktische Umsetzung," Ibero America Institute for Econ. Research (IAI) Discussion Papers 090, Ibero-America Institute for Economic Research. [Downloadable!]
  7. repec:idb:wpaper:1048 is not listed on IDEAS
  8. Drusilla Brown & Alan Deardorff & Robert Stern, 1998. "Trade and Labor Standards," Open Economies Review, Springer, vol. 9(2), pages 171-194, April. [Downloadable!] (restricted)
  9. Rana Hasan, 2001. "The Impact of Trade and Labor Market Regulations on Employment and Wages: Evidence from Developing Countries," Economics Study Area Working Papers 32, East-West Center, Economics Study Area. [Downloadable!]
  10. Alan B. Krueger, 1996. "Observations on International Labor Standards and Trade," NBER Working Papers 5632, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. César Calderón & Alberto Chong & Rodrigo Valdés, 2004. "Labor Market Regulations and Income Inequality: Evidence for a Panel of Countries," RES Working Papers 4375, Inter-American Development Bank, Research Department. [Downloadable!]
  12. Yana van der Meulen Rodgers & Gunseli Berik, 2006. "Asia's Race to Capture Post-MFA Markets: A Snapshot of Labor Standards, Compliance, and Impacts on Competitiveness," Working Paper Series, Department of Economics, University of Utah 2006_02, University of Utah, Department of Economics.
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