This paper provides an extensive review of the literatures on product and labor market regulations and their effects on labor market outcomes. It uncovers the interdependence of these two types of regulations, an area that has received limited attention in research. The paper highlights why understanding the intricate relationship between product and labor market regulations is crucial for effective policy making and advancement of labor market conditions. The findings strongly discourage adopting uniform policies and advocate for tailored approaches to labor market promotion.
Authors
Alzate, David, Carranza, Eliana, Duran-Franch, Joana, Packard, Truman, Proffen, Celina
- Citation
- “ Alzate, David ; Carranza, Eliana ; Duran-Franch, Joana ; Packard, Truman ; Proffen, Celina . 2024 . How Regulations Impact the Labor Market: A Review of the Literatures on Product and Labor Market Regulations . Policy Research Working Paper; 10961 . © Washington, DC: World Bank . http://hdl.handle.net/10986/42368 License: CC BY 3.0 IGO . ”
- Collection(s)
- Policy Research Working Papers
- DOI
- http://dx.doi.org/10.1596/1813-9450-10961
- Identifier externaldocumentum
- 34412657
- Identifier internaldocumentum
- 34412657
- Pages
- 93
- Published in
- United States of America
- RelationisPartofseries
- Policy Research Working Paper; 10961
- Report
- WPS10961
- Rights
- CC BY 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by/3.0/igo/
- UNIT
- People - SP Global Engagement (HSPGE)
- URI
- https://hdl.handle.net/10986/42368
- date disclosure
- 2024-11-06
- region geographical
- World
Files
Table of Contents
- Introduction 6
- Methodology 9
- Product Market Regulations 11
- How Do Product Market Regulations Affect Workers? 11
- Promoting Contestable Markets 15
- Pro-competitive Product Market Regulation in General 15
- Lowering Entry Barriers and Delicensing 20
- Liberalizing Markets to Trade and Foreign Participation 23
- Distortionary Governmental Policies and Practices 26
- Antitrust Law and its Enforcement 27
- Synthesis of PMR Promoting Contestable Markets 28
- Liberalizing Firm Operation 29
- The Special Role of Upstream Sector Regulations 31
- Regulations Affecting Firm Ownership Structures 33
- Distortionary Product Market Regulations 34
- Synthesis of PMR Liberalizing Firm Operation 37
- Labor Market Regulations 37
- How Do Labor Market Regulations Affect Workers? 37
- Minimum Wage 40
- Minimum Wage: Impact on Living Standards 41
- Minimum Wage: Impact on Productivity 50
- Minimum Wage: Impact on Social Cohesion 51
- Employment Protection Legislation 52
- Employment Protection Legislation: Impact on Living Standards 54
- Employment Protection Legislation: Impact on Productivity 56
- Unions and Collective Bargaining 57
- Unions and Collective Bargaining: Impact on Living Standards 60
- Unions and Collective Bargaining: Impact on Social Cohesion 62
- Mandated Benefits 64
- Unemployment Insurance: Impact on Living Standards 65
- Unemployment Insurance: Impact on Productivity 69
- Unemployment Insurance: Impact on Social Cohesion 69
- Pension System: Impact on Living Standards 69
- Pension System: Impact on Productivity 71
- Paid Family Leave: Impact on Living Standards 72
- Paid Family Leave: Impact on Productivity 72
- Interaction between PMR and LMR 73
- Conclusion 80
