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LABOUR MARKET REGULATION: SOME COMPARATIVE LESSONS
Author(s) -
Siebert W. S.
Publication year - 2005
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2005.00560.x
Subject(s) - market regulation , productivity , labour economics , economics , welfare , work (physics) , politics , unemployment , market economy , outcome (game theory) , political science , economic growth , law , microeconomics , mechanical engineering , engineering
Labour market regulation that undermines freedom of contract leads to fewer, higher productivity jobs with employment being across a narrower range of ages. More people are excluded from the labour market, in highly regulated countries and they remain unemployed for longer. This seems to be damaging to welfare. It is possible that the extent of regulation is explained by the relative ability of those who gain from regulation (those in work) to influence the outcome of political processes to a greater extent than those who lose (the unemployed). However, the legal framework and legal traditions may also play a part.