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Education, Market Rigidities and Growth

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  • Aghion, Philippe

    ()
    (Harvard University)

  • Askenazy, Philippe

    ()
    (Paris School of Economics)

  • Bourlès, Renaud

    ()
    (GREQAM, University of Aix-Marseille II)

  • Cette, Gilbert

    ()
    (Bank of France)

  • Dromel, Nicolas

    ()
    (University of Paris 1 Panthéon-Sorbonne)

Abstract

This note investigates the effects of the education level, product market rigidities and employment protection legislation on growth. It exploits macro-panel data for OECD countries. For countries close to the technological frontier, education and rigidities are significantly related to TFP growth. The contribution of the interaction between product market regulation and labour market rigidity seems particularly substantial.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3166.

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Length: 10 pages
Date of creation: Nov 2007
Date of revision:
Publication status: published in: Economics Letters, 2009, 102 (1), 62-65
Handle: RePEc:iza:izadps:dp3166

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Keywords: regulations; growth; productivity; market rigidities; education;

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  1. Cohen, Daniel & Soto, Marcelo, 2001. "Growth and Human Capital: Good Data, Good Results," CEPR Discussion Papers 3025, C.E.P.R. Discussion Papers.
  2. Giuseppe Nicoletti & Stefano Scarpetta, 2003. "Regulation, productivity and growth: OECD evidence," Economic Policy, CEPR & CES & MSH, vol. 18(36), pages 9-72, 04.
  3. Ian Babetskii & Nauro F. Campos, 2007. "Does Reform Work? An Econometric Examination of the Reform-Growth Puzzle," Working Papers 2007/2, Czech National Bank, Research Department.
  4. Aghion, Philippe & Askenazy, Philippe & Bourles, Renaud & Cette, Gilbert & Dromel, Nicolas, 2007. "Education supérieure, rigidités de marché et croissance," CEPREMAP Working Papers (Docweb) 0705, CEPREMAP.
  5. Saint-Paul, Gilles, 1997. "Is labour rigidity harming Europe's competitiveness? The effect of job protection on the pattern of trade and welfare," European Economic Review, Elsevier, vol. 41(3-5), pages 499-506, April.
  6. Nicholas Crafts, 2006. "Regulation and Productivity Performance," Oxford Review of Economic Policy, Oxford University Press, vol. 22(2), pages 186-202, Summer.
  7. Andrea Bassanini & Ekkehard Ernst, 2002. "Labour Market Institutions, Product Market Regulation, and Innovation: Cross-Country Evidence," OECD Economics Department Working Papers 316, OECD Publishing.
  8. Gilles Saint Paul, 1999. "The political economy of employment protection," Economics Working Papers 355, Department of Economics and Business, Universitat Pompeu Fabra.
  9. Bourlès, R. & Cette, G., 2006. "Trends in "structural" productivity levels in the major industrialized countries," Working papers 156, Banque de France.
  10. Giuseppe Nicoletti & Stefano Scarpetta, 2005. "Regulation and Economic Performance: Product Market Reforms and Productivity in the OECD," OECD Economics Department Working Papers 460, OECD Publishing.
  11. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, September.
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