Product Market Reforms and Unemployment in Europe

Arbeitspapier

In this paper we study how promoting product market competition by reducing mark-ups or by increasing productivity are able to complement labor market reforms. We use a simple general equilibrium model with different types of labor. The bottom-line of the paper is that product market reforms will help to reduce aggregate unemployment under many circumstances even though sectoral unemployment may increase. We also highlight that the mobility of high-skilled workers and the distribution of unemployment across sectors determine whether productivity improvements in one sector affect aggregate unemployment positively or negatively.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 255

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Mobility, Unemployment, Vacancies, and Immigrant Workers: General ; Computable and Other Applied General Equilibrium Models ; Oligopoly and Other Imperfect Markets
• Subject: Product market competition ; unemployment ; mobility of labor force ; political support for reforms ; Marktmacht ; Deregulierung ; Wettbewerb ; Beschäftigungseffekt ; Allgemeines Gleichgewicht ; Arbeitsmobilität ; Arbeitslosigkeit ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gersbach, Hans ; Schniewind, Achim
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/21104
• Last update: 10.03.2025, 11:44 AM CET