The Impact of Labour Market Deregulation: Lessons from the
AbstractUnemployment remains a major economic and social problem in many developedeconomies. Thispaper provides theoretical and empirical perspectives on the impact of labourmarket deregulation as a means of combatting unemployment and of enhancing competitivewage determination. The paper focusses specifically on The Netherlands and NewZealand, two small open economies in which unemployment rates reduced to close to half of theirrespective post-1980 peaks. The labour market policies that contributed to these outcomes arereferred to as the "Polder" model and the "Kiwi" model respectively. Despite some similarities,there are significant differences between these models. These are highlighted in thepaper. It is found that the effects of deregulation are hard to separate out from other influenceson the labour market. The success of the deregulation policies is easily overstated by aselective use of labour market indicators, or by making trough to peak comparisons along thebusiness cycle.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 99-001/3.
Date of creation: 21 Jan 1999
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labour markets; flexibility; deregulation; international comparisons;
Find related papers by JEL classification:
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-05-03 (All new papers)
- NEP-LAB-1999-05-03 (Labour Economics)
- NEP-PKE-1999-05-03 (Post Keynesian Economics)
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.:
- Saint-Paul, Gilles, 1997.
"The Rise and Persistence of Rigidities,"
American Economic Review,
American Economic Association, vol. 87(2), pages 290-94, May.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004.
"Spatial Heterogeneity and the Wage Curve Revisited,"
ERSA conference papers
ersa04p115, European Regional Science Association.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2006. "Spatial Heterogeneity And The Wage Curve Revisited," Journal of Regional Science, Wiley Blackwell, vol. 46(4), pages 707-731.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004. "Spatial Heterogeneity and the Wage Curve revisited," Tinbergen Institute Discussion Papers 04-054/3, Tinbergen Institute.
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