Education, Market Rigidities and Growth

Aghion, Philippe; Askenazy, Philippe; Bourlès, Renaud; Cette, Gilbert; Dromel, Nicolas

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Education, Market Rigidities and Growth

IZA Discussion Paper No. 3166

10 Pages Posted: 5 Dec 2007 Last revised: 8 May 2025

See all articles by Philippe Aghion

Philippe Aghion

College de France and London School of Economics and Political Science, Fellow; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

Philippe Askenazy

CNRS; IZA Institute of Labor Economics; Paris School of Economics (PSE); National Institute of Statistics and Economic Studies (INSEE)

Renaud Bourlès

University of Angers - Research Group in Quantitative Saving (GREQAM); Ecole Centrale Marseille

Gilbert Cette

Banque de France

Nicolas Dromel

Paris School of Economics (PSE)

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Abstract

This note investigates the effects of the education level, product market rigidities and employment protection legislation on growth. It exploits macro-panel data for OECD countries. For countries close to the technological frontier, education and rigidities are significantly related to TFP growth. The contribution of the interaction between product market regulation and labour market rigidity seems particularly substantial.

Keywords: regulations, growth, productivity, market rigidities, education

JEL Classification: O47, J24, J68, L40, O57

Suggested Citation: Suggested Citation

Aghion, Philippe and Askenazy, Philippe and Bourlès, Renaud and Cette, Gilbert and Dromel, Nicolas, Education, Market Rigidities and Growth. IZA Discussion Paper No. 3166, Available at SSRN: https://ssrn.com/abstract=1037301