Labour market distortions and aggregate productivity.

This project aims to investigate the potential impact of labour market imperfections on aggregate productivity growth. It fits in with the recent literature dealing with the sources of aggregate productivity growth, realized through within-firm efficiency changes or through the reallocation of resources between firms. The methodology allows us to identify potential gains in aggregate productivity growth through a more efficient allocation of labour, currently not realized due to labour market distortions. Moreover, we will carry out interesting counterfactual exercises, for instance on the consequences of a harmonization of the hiring and firing conditions for labourers and employees in Belgium.

Keywords:Labour market distortions, aggregate productivity

Disciplines:Business administration and accounting, Management