Felbermayr, Gabriel J.; Prat, Julien - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
This paper analyzes the effect of Product Market Regulation (PMR) on unemployment in asearch model with heterogeneous multiple-worker firms. In our setup, PMR modifies thedistribution of firm productivities, thereby affecting the equilibrium rate of unemployment...