This paper is a preliminary draft of a chapter for the new Handbook of Labour Economics edited by Orley Ashenfelter and David Card and Published by North Holland.

We present a theoretical as well as empirical analysis of the impact of employment regulations on permanent and temporary employment. We consider three different forms of such regulations, namely insider protection, fixed term contract regulations, and legislation on temporary work agencies, and...

By assuming Cobb-Douglas production technology, many well-known imperfectly competitive macroeconomic models of the labour market (e.g. Layard, Nickell and Jackman, 1991) imply that equilibrium unemployment is independent of the capital stock. This paper introduces a new notion of capacity into...

In this paper we introduce a small Keynesian model of economic growth which is centered around two advanced types of Phillips curves, one for money wages and one for prices, both being augmented by perfect myopic foresight and supplemented by a measure of the medium-term inflationary climate...

Why might there be a long-run trade-off between growth and unemployment? In general equilibrium, the returns on the factors of production are interdependent. This paper develops a model where the determination of the wage is central to the evolution of these incentives. The incentive to hire...

Why might there be a long-run trade-off between growth and unemployment? In general equilibrium, the returns on the factors of production are interdependent. This paper develops a model where the determination of the wage is central to the evolution of these incentives. The incentive to hire...

We quantify the extent to which public-sector employment crowds out private-sector employment using specially assembled datasets for a large cross-sector of developing and advanced countries.  Regressions of either private-sector employment rates or unemployment rates on two measures of...

In the 1980s. India experimented with deregulation in industry and trade. Manufacturing output accelerated but employment declined. The latter has raised doubt regarding desirability of policy reforms.This paper provides an explanation of the employment decline that sheds light on the manner in...

We develop a model of endogenous skill-biased technical change in developing countries.  The model reconciles wildly dispersed existing estimates of the elasticity of substitution between more and less educated workers.  It also produces an estimating equation for the elasticity, which allow...

Agricultural and other physically demanding sectors are important sources of growth in developing countries but prevalent diseases such as malaria adversely impact the productivity, labor supply, and occupational choice of workers in these sectors by reducing physical capacity.  This study...