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Are Product and Labour Market Reforms Mutually Reinforcing?

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Author Info
Paul Cavelaars
Abstract

This paper analyses the relationship between product market competition and labour market institutions in a general equilibrium context. It concludes that an increase in product market competition, enhanced .exibility of labour supply, social security reform and a reduction in union bargaining power are mutually re-inforcing (in terms of their employment impact) in some, but not all cases. This stresses the need for an extremely careful design of such reforms.

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File URL: http://www.dnb.nl/binaries/WP%20182-2008%20-%20Are%20Product%20and%20Labour%20Market%20Reforms%20Mutually%20Reinforcing_tcm46-188338.pdf
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Paper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number 182.

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Date of creation: Sep 2008
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Handle: RePEc:dnb:dnbwpp:182

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Related research
Keywords: labour market regulation; wage bargaining.;

Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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  1. Thomas Beissinger & Hartmut Egger, 2004. "Dynamic wage bargaining if benefits are tied to individual wages," Oxford Economic Papers, Oxford University Press, vol. 56(3), pages 437-460, July. [Downloadable!] (restricted)
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