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Education, Market Rigidities and Growth

  • 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)

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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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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  1. Nicoletti, Giuseppe & Scarpetta, Stefano, 2003. "Regulation, productivity, and growth : OECD evidence," Policy Research Working Paper Series 2944, The World Bank.
  2. Daniel Cohen & Marcelo Soto, 2007. "Growth and human capital: good data, good results," Journal of Economic Growth, Springer, vol. 12(1), pages 51-76, March.
  3. Bourles, Renaud & Cette, Gilbert, 2007. "Trends in "structural" productivity levels in the major industrialized countries," Economics Letters, Elsevier, vol. 95(1), pages 151-156, April.
  4. Saint-Paul, Gilles, 1999. "The Political Economy of Employment Protection," CEPR Discussion Papers 2109, C.E.P.R. Discussion Papers.
  5. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, March.
  6. Babetskii, Ian & Campos, Nauro F, 2007. "Does Reform Work? An Econometric Examination of the Reform-Growth Puzzle," IZA Discussion Papers 2638, Institute for the Study of Labor (IZA).
  7. Aghion, Philippe & Askenazy, Philippe & Bourles, Renaud & Cette, Gilbert & Dromel, Nicolas, 2007. "Education supérieure, rigidités de marché et croissance," CEPREMAP Working Papers (Docweb) 0705, CEPREMAP.
  8. 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.
  9. Andrea Bassanini & Ekkehard Ernst, 2002. "Labour Market Institutions, Product Market Regulation, and Innovation: Cross-Country Evidence," OECD Economics Department Working Papers 316, OECD Publishing.
  10. 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.
  11. Nicholas Crafts, 2006. "Regulation and Productivity Performance," Oxford Review of Economic Policy, Oxford University Press, vol. 22(2), pages 186-202, Summer.
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