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Product and Labor Market Regulations, Production Prices, Wages and Productivity

Author

Listed:
  • G. Cette
  • J. Lopez
  • J. Mairesse

Abstract

This study is to our knowledge the first attempt to infer the consequences on productivity entailed by anticompetitive regulations in product and labor markets through their impacts on production prices and wages. Results are encouraging showing that changes in production prices and wages at country*industry levels are informative about the creation of rents impeding productivity in different ways and to different extents. A simulation based on these results and on OECD regulation indicators suggests that nearly all countries, in particular European countries, could expect sizeable gains in multifactor productivity over the years from an economic policy that would be able to reform product and labor market regulation practices.

Suggested Citation

  • G. Cette & J. Lopez & J. Mairesse, 2014. "Product and Labor Market Regulations, Production Prices, Wages and Productivity," Working papers 514, Banque de France.
    • Handle: RePEc:bfr:banfra:514
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Productivity; market imperfections; anticompetitive regulations; rents.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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