TY - UNPB
T1 - Is deregulation of product and labour markets promoting employment and productivity?
T2 - A difference-in-differences approach
AU - Correia, Hugo
AU - Gouveia, A.F.
N1 - Funding: The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396.
PY - 2017/9/4
Y1 - 2017/9/4
N2 - This paper examines the impact of labour and product market reforms on sectoral employment and productivity, following a difference-in-differences approach. Using industry-level data for the period 1997-2013, we show that employment protection deregulation has a positive effect on sectoral employment for industries more exposed to labour market legislation, despite having a non-positive impact on productivity. Upstream product market deregulation also increases sectoral employment for the downstream sectors more dependent on upstream inputs. Nevertheless, it has mixed effects on sectoral productivity: while upstream sectors face productivity losses, the downstream sectors more exposed to the deregulated sectors grasp productivity gains.
AB - This paper examines the impact of labour and product market reforms on sectoral employment and productivity, following a difference-in-differences approach. Using industry-level data for the period 1997-2013, we show that employment protection deregulation has a positive effect on sectoral employment for industries more exposed to labour market legislation, despite having a non-positive impact on productivity. Upstream product market deregulation also increases sectoral employment for the downstream sectors more dependent on upstream inputs. Nevertheless, it has mixed effects on sectoral productivity: while upstream sectors face productivity losses, the downstream sectors more exposed to the deregulated sectors grasp productivity gains.
KW - Labour Market Reforms
KW - Product Market Reforms
KW - Employment
KW - Productivity
UR - http://ademu-project.eu/wp-content/uploads/2017/10/WP2017_0073-Deregulation-of-product-and-labour-markets.pdf
M3 - Working paper
T3 - ADEMU Working Papers Series
BT - Is deregulation of product and labour markets promoting employment and productivity?
ER -