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Are Product and Labour Market Reforms Mutually Reinforcing?

  • Paul Cavelaars
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    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
    Contact details of provider: Postal: Postbus 98, 1000 AB Amsterdam
    Web page: http://www.dnb.nl/en/

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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.
    2. Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345, March.
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