Toward a Theory of Labor Market Institutions

UPF Economics and Business Working Paper No. 433

20 Pages Posted: 1 May 2000

See all articles by Gilles Saint-Paul

Gilles Saint-Paul

University of Toulouse I - GREMAQ-IDEI; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Abstract

Standard economic analysis holds that labor market rigidities are harmful for job creation and typically increase unemployment. But many orthodox reforms of the labor market have proved difficult to implement because of political opposition. For these reasons it is important to explain why we observe 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 a forthcoming book (Saint-Paul (2000)), to which the reader is referred for further details.

Keywords: Political economy, labor market institutions, unemployment

JEL Classification: D7, E24, E6, H2, J3, J4, J5, J6, K31

Suggested Citation

Saint-Paul, Gilles, Toward a Theory of Labor Market Institutions. UPF Economics and Business Working Paper No. 433. Available at SSRN: https://ssrn.com/abstract=224564 or http://dx.doi.org/10.2139/ssrn.224564

Gilles Saint-Paul (Contact Author)

University of Toulouse I - GREMAQ-IDEI ( email )

Manufacture des Tabacs
21 Allees de Brienne
Toulouse, 31000
France
+33 5 6112 8544 (Phone)
+33 5 6122 5563 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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