English, Article, Journal or magazine article edition: Why labour market regulation may pay off: Worker motivation, co-ordination and productivity growth Servaas Storm; C.W.M. Nastepaad

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Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Why labour market regulation may pay off: Worker motivation, co-ordination and productivity growth
Author
  • Servaas Storm
  • C.W.M. Nastepaad
Physical Description
  • preprint
Notes
  • The impact of labour market regulation on labour productivity growth is ambiguous: on the one hand, regulation raises labour adjustment costs, which negatively affects productivity; but on the other hand, regulation may (for various reasons) raise worker motivation and commitment and (by means of wage bargaining co-ordination) stimulate labour-saving technological progress, thus raising productivity. We present empirical evidence for a cross-section of 20 OECD countries (1984-1997) that relatively rigid (i.e. regulated and co-ordinated) labour markets promote long-run labour productivity growth. This conclusion is reinforced when we differentiate between (three) categories of labour markets in the OECD countries and test for differences in productivity performance.
  • labour productivity, employment security, labour flexibility, measurement, OECD countries
  • RePEc:ilo:empelm:2007-04
Language
  • English
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