TY - JOUR
T1 - Product market deregulation and the US employment miracle
AU - Ebell, Monique
AU - Haefke, Christian
N1 - Funding Information:
✩ We thank Philippe Bacchetta, Olivier Blanchard, Jan Boone, Michael Burda, Antonio Cabrales, Jordi Galí, Adriana Kugler, Etienne Lehmann, Pietro Peretto, Chris Pissarides, Julien Prat, Michael Reiter, Albrecht Ritschl, Roberto Samaniego, Eric Smith, Chris Telmer, Harald Uhlig, Etienne Wasmer, and Fabrizio Zilibotti for helpful comments and discussions. Two anonymous referees and an associate editor provided valuable suggestions that substantially improved this paper. We also thank seminar audiences at Cambridge, Duke, the European Central Bank, Humboldt, IZA, Tilburg, UPF, and Universitat Autonoma de Barcelona, as well as the participants of the 2003 European Summer Symposium in Macroeconomics, 2003 North American Winter Meetings of the Econometric Society, the CEPR DAEUP meeting in Berlin and the 2003 SED meetings for helpful comments. All remaining errors are our own. Haefke acknowledges financial support from EU grant HPMF-CT-2001-01252 and CICYT grant SEC2001-0792. * Corresponding author at: Department of Economics and Finance, Institute for Advanced Studies +43 1 59991 312. E-mail addresses: [email protected] (M. Ebell), [email protected] (C. Haefke).
PY - 2009/7
Y1 - 2009/7
N2 - We consider the dynamic relationship between product market entry regulation and equilibrium unemployment. The main theoretical contribution is combining a job matching model with monopolistic competition in the goods market and individual bargaining. We calibrate the model to US data and perform a policy experiment to assess whether the decrease in trend unemployment during the 1980s and 1990s could be directly attributed to product market deregulation. Under our baseline calibration, our results suggest that a decrease of less than two-tenths of a percentage point of unemployment rates can be attributed to product market deregulation, a surprisingly small amount.
AB - We consider the dynamic relationship between product market entry regulation and equilibrium unemployment. The main theoretical contribution is combining a job matching model with monopolistic competition in the goods market and individual bargaining. We calibrate the model to US data and perform a policy experiment to assess whether the decrease in trend unemployment during the 1980s and 1990s could be directly attributed to product market deregulation. Under our baseline calibration, our results suggest that a decrease of less than two-tenths of a percentage point of unemployment rates can be attributed to product market deregulation, a surprisingly small amount.
KW - Barriers to entry
KW - Product market competition
KW - Wage bargaining
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U2 - 10.1016/j.red.2008.11.002
DO - 10.1016/j.red.2008.11.002
M3 - Article
AN - SCOPUS:67349178615
SN - 1094-2025
VL - 12
SP - 479
EP - 504
JO - Review of Economic Dynamics
JF - Review of Economic Dynamics
IS - 3
ER -