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Product Market Regulation and Labor Market Outcomes: How can Deregulation Create Jobs?

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Author Info
Burda, Michael C.

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Abstract

This paper reports on ongoing research on the interactions between product regulation and labor market outcomes. In particular, I summarize work on the employment effects of shop- closing regulation in the retail and other related sectors. Evidence on employment in the retail sector from Germany, the Netherlands and the United States suggests that the regulatory regime might play an important role; I argue that a nonnegligible comp o nent of the recent Dutch employment miracle could be attributed to product market deregulation, in particular liberalization of shop-closing laws effected in the mid-1990s. I sketch a model, based on Burda and Weil (1999), which can rationalize potential public interest aspects of such regulations as well as identify their employment and output costs.

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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 230.

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Date of creation: 2000
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Handle: RePEc:ces:ceswps:_230

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Related research
Keywords: Product market regulation; retail trade; employment;

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Find related papers by JEL classification:
D62 - Microeconomics - - Welfare Economics - - - Externalities
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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. Morrison, Steven A & Newman, Robert J, 1983. "Hours of Operation Restrictions and Competition among Retail Firms," Economic Inquiry, Oxford University Press, vol. 21(1), pages 107-14, January.
  2. Weiss, Yoram, 1996. "Synchronization of Work Schedules," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(1), pages 157-79, February.
  3. Sanyal, Kalyan K & Jones, Ronald W, 1982. "The Theory of Trade in Middle Products," American Economic Review, American Economic Association, vol. 72(1), pages 16-31, March. [Downloadable!] (restricted)
  4. Hans Gersbach, 1999. "Product market competition, unemployment and income disparities," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(2), pages 221-240, June. [Downloadable!] (restricted)
  5. Raymond Gradus, 1996. "The economic effects of extending shop opening hours," Journal of Economics, Springer, vol. 64(3), pages 247-263, October. [Downloadable!] (restricted)
  6. Clemenz, Gerhard, 1990. "Non-sequential consumer search and the consequences of a deregulation of trading hours," European Economic Review, Elsevier, vol. 34(7), pages 1323-1337, November. [Downloadable!] (restricted)
  7. Tanguay, Georges & Vallee, Luc & Lanoie, Paul, 1995. "Shopping Hours and Price Levels in the Retailing Industry: A Theoretical and Empirical Analysis," Economic Inquiry, Oxford University Press, vol. 33(3), pages 516-24, July.
  8. Thum, Marcel & Weichenrieder, Alfons, 1997. "'Dinkies' and Housewives: The Regulation of Shopping Hours," Kyklos, Blackwell Publishing, vol. 50(4), pages 539-59.
  9. Nickell, Stephen, 1999. "Product markets and labour markets1," Labour Economics, Elsevier, vol. 6(1), pages 1-20, March. [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. Helge Berger & Stephan Danninger, 2006. "The Employment Effects of Labor and Product Markets Deregulation and their Implications for Structural Reform," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  2. Jo Seldeslachts, 2002. "Interactions Between Product and Labour Market Reforms," UFAE and IAE Working Papers 519.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
  3. Helge Berger & Stephan Danninger, 2005. "Labor and Product Market Deregulation: Partial, Sequential, or Simultaneous Reform?," IMF Working Papers 05/227, International Monetary Fund. [Downloadable!]
  4. Ron Smith & Gylfi Zoega, 2004. "Global Shocks and Unemployment Adjustment," DEGIT Conference Papers c009_003, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
    Other versions:
  5. Michael Groemling, 2002. "Why does redistribution not shrink when equality is high?," Intereconomics: Review of European Economic Policy, Springer, vol. 37(4), pages 204-211, July. [Downloadable!] (restricted)
  6. E. Dijkgraaf & R.H.J.M. Gradus, . "Deregulating Sunday Shop Policies," Tinbergen Institute Discussion Papers 06-003/3, Tinbergen Institute. [Downloadable!]
  7. Elbert Dijkgraaf & Raymond Gradus, 2004. "Explaining Sunday shop policies," Public Economics 0409003, EconWPA. [Downloadable!]
    Other versions:
  8. Amable, Bruno & Gatti, Donatella, 2001. "The Impact of Product Market Competition on Employment and Wages," IZA Discussion Papers 276, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Gersbach, Hans & Schniewind, Achim, 2002. "Uneven Technical Progress and Unemployment," IZA Discussion Papers 478, Institute for the Study of Labor (IZA). [Downloadable!]
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