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Imperfect Goods and Labor Markets, Regulation, and Spillover Effects

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  • Helge Sanner

Abstract

(De)regulatory interventions frequently have unintended cross- market effects, which may or may not be desirable. We assess the effects of three policies on aggregate variables, in particular real income, from a theoretical perspective. Our results suggest that instruments acting upon wages have only a weak impact on real income, whereas the distribution of income is affected strongly. In contrast, a policy that enhances product market competition is fostering real income, but also impacts strongly on union wages and the distribution of income.

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Bibliographic Info

Paper provided by Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät in its series Volkswirtschaftliche Diskussionsbeiträge with number 56.

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Date of creation: 2003
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Handle: RePEc:pot:vwldis:56

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Keywords: Monopolistic competition; Dual labor market; Wage bargaining; Cross- market effects; Regulation;

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References

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  1. Tito Boeri & Giuseppe Nicoletti & Stefano Scarpetta, . "Regulation and Labour Market Performance," Working Papers 158, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  2. John Pencavel, 2003. "The Surprising Retreat of Union Britain," NBER Working Papers 9564, National Bureau of Economic Research, Inc.
  3. Blanchard, Olivier J & Giavazzi, Francesco, 2001. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labour Markets," CEPR Discussion Papers 2713, C.E.P.R. Discussion Papers.
  4. Sébastien Jean & Giuseppe Nicoletti, 2002. "Product Market Regulation and Wage Premia in Europe and North America: An Empirical Investigation," OECD Economics Department Working Papers 318, OECD Publishing.
  5. Werner Antweiler & Daniel Trefler, 2000. "Increasing Returns and All That: A View From Trade," NBER Working Papers 7941, National Bureau of Economic Research, Inc.
  6. Giuseppe Nicoletti & Andrea Bassanini & Ekkehard Ernst & Sébastien Jean & Paulo Santiago & Paul Swaim, 2001. "Product and Labour Markets Interactions in OECD Countries," OECD Economics Department Working Papers 312, OECD Publishing.
  7. Nickell, Stephen, 1999. "Product markets and labour markets1," Labour Economics, Elsevier, vol. 6(1), pages 1-20, March.
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Cited by:
  1. Do Truong Giang, 2004. "Tariffs and export subsidies in a spatial economic model," Volkswirtschaftliche Diskussionsbeiträge 65, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
  2. Gert Kneis & Klaus Schöler, 2003. "Zur Begründung der linearen Nachfragefunktion in der Haushaltstheorie," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 223(5), pages 571-580, September.
  3. Klaus Schöler, 2007. "Gibt es eine optimale Stadtgröße?," Volkswirtschaftliche Diskussionsbeiträge 89, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
  4. Norbert Eickhof & Kathrin Isele, 2005. "Do Economists Matter? Eine politökonomische Analyse des Einflusses wettbewerbspolitischer Leitbilder auf die europäische Fusionskontrolle," Volkswirtschaftliche Diskussionsbeiträge 74, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
  5. Verena L. Holzer, 2004. "Does the German Renewable Energies Act fulfil Sustainable Development Objectives?," Volkswirtschaftliche Diskussionsbeiträge 73, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.

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