Labor and product market deregulation boosts employment growth, study finds.
Labor and product market deregulation can boost employment growth, especially when both are less regulated. A study on OECD countries from 1990-2004 shows that lower regulation levels lead to more jobs, with significant combined effects. The best deregulation strategy depends on reform costs, interaction strengths, and policymaker perspectives. Coordination is needed for optimal deregulation, unless costs vary greatly between markets.