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Toward a theory of labor market institutions
Saint Paul, Gilles
Universitat Pompeu Fabra. Departament d'Economia i Empresa
Standard economic analysis holds that labor market rigidities are harmfulfor job creation and typically increase unemployment. But many orthodoxreforms of the labor market have proved difficult to implement because ofpolitical opposition. For these reasons it is important to explain why weobserve such regulations. In this paper I outline a theory of how they may arise and why they fit together. This theory is fully developed in aforthcoming book (Saint-Paul (2000)), to which the reader is referred forfurther details.
Macroeconomics and International Economics
political economy
labor market institutions
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