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A rapidly expanding empirical literature has addressed the widely accepted claim that employment-unfriendly labor market institutions explain the pattern of unemployment across countries. The main culprits are held to be protective institutions, namely unemployment benefit entitlements,...
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In this paper, I study the political rationale for labor market regulation. Oligopolists employ raw labor and human … less competition from outside. Then, the fall of income due to wage increases is reduced and labor market regulation …
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