rents and the government can support unions by labour market regulation. We show that if unions are initially very strong …, regulation increases only the workers' profit share and has no impact on employment and growth. Otherwise, regulation increases … faster. Regulation (deregulation) is desirable when the growth rate is below (above) some critical level …

and engineers while R&D uses only engineers. Workers are unionized and labour market regulation supports union power in … level of welfare. When the interest-rate elasticity of consumption in the world is low (high), the simultaneous regulation …

rents and the government can support unions by labour market regulation. We show that if unions are initially very strong …, regulation increases only the workers’ profit share and has no impact on employment and growth. Otherwise, regulation increases … faster. Regulation (deregulation) is desirable when the growth rate is below (above) some critical level. …

and engineers while R&D uses only engineers. Workers are unionized and labour market regulation supports union power in … level of welfare. When the interest-rate elasticity of consumption in the world is low (high), the simultaneous regulation …

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 …