Employment Protection Deregulation and Labor Shares in Advanced Economies

• 成果类型: Article
• 署名作者: Ciminelli, Gabriele; Duval, Romain; Furceri, Davide
• 署名单位: International Monetary Fund
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_00983
• 发表日期: 2022-11
• 页码: 1174-1190
• 关键词: decline; WORKER; fall

摘要

This paper assesses the impact of job protection deregulation on the labor share in a sample of 26 advanced economies during the 1970-2013 period, using a newly constructed dataset of major reforms in this area. We employ a difference-in-differences identification strategy using two identifying assumptions grounded in theory-deregulation has larger effects in industries characterized by (i) a higher natural propensity to regularly adjust the workforce and (ii) a lower elasticity of substitution between capital and labor. We find significant negative effects of deregulation on the labor share, contributing to about a tenth of its observed decline in advanced economies.