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Product Market Regulation and Labor Market Outcomes: How can Deregulation Create Jobs?

This paper reports on ongoing research on the interactions between product regulation and labor market outcomes. In particular, I summarize work on the employment effects of shop-closing regulation in the retail and other related sectors. Evidence on employment in the retail sector from Germany, the Netherlands and the United States suggests that the regulatory regime might play an important role; I argue that a nonnegligible comp o nent of the recent Dutch employment miracle could be attributed to product market deregulation, in particular liberalization of shop-closing laws effected in the mid-1990s. I sketch a model, based on Burda and Weil (1999), which can rationalize potential public interest aspects of such regulations as well as identify their employment and output costs.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2000/wp-cesifo-2000-01/WP230.PDF
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 230.

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Date of creation: 2000
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Handle: RePEc:ces:ceswps:_230
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  1. Nickell, Stephen, 1999. "Product markets and labour markets1," Labour Economics, Elsevier, vol. 6(1), pages 1-20, March.
  2. Tanguay, Georges & Vallee, Luc & Lanoie, Paul, 1995. "Shopping Hours and Price Levels in the Retailing Industry: A Theoretical and Empirical Analysis," Economic Inquiry, Western Economic Association International, vol. 33(3), pages 516-24, July.
  3. Weiss, Yoram, 1996. "Synchronization of Work Schedules," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(1), pages 157-79, February.
  4. Morrison, Steven A & Newman, Robert J, 1983. "Hours of Operation Restrictions and Competition among Retail Firms," Economic Inquiry, Western Economic Association International, vol. 21(1), pages 107-14, January.
  5. Hans Gersbach, 1999. "Product market competition, unemployment and income disparities," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(2), pages 221-240, June.
  6. Sanyal, Kalyan K & Jones, Ronald W, 1982. "The Theory of Trade in Middle Products," American Economic Review, American Economic Association, vol. 72(1), pages 16-31, March.
  7. Raymond Gradus, 1996. "The economic effects of extending shop opening hours," Journal of Economics, Springer, vol. 64(3), pages 247-263, October.
  8. Thum, Marcel & Weichenrieder, Alfons, 1997. "'Dinkies' and Housewives: The Regulation of Shopping Hours," Kyklos, Wiley Blackwell, vol. 50(4), pages 539-59.
  9. Clemenz, Gerhard, 1990. "Non-sequential consumer search and the consequences of a deregulation of trading hours," European Economic Review, Elsevier, vol. 34(7), pages 1323-1337, November.
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