Labor Market Regulation and Productivity Growth: Evidence for Twenty OECD Countries (1984–2004)
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Abstract
We present empirical evidence for a cross section of twenty OECD countries (1984–2004) that a relatively regulated and coordinated (“rigid”) industrial relations system promotes long‐run labor productivity growth. This conclusion is reinforced when we differentiate between (three) categories of OECD industrial relations systems and test for differences in productivity performance.
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