%0 Journal Article
%T Before It Gets Better: The Short
%A Andrea Bassanini
%A Federico Cingano
%J ILR Review
%@ 2162-271X
%D 2019
%R 10.1177/0019793918766054
%X The article exploits long time series of industry-level data in a group of OECD countries to analyze the short-term labor market effects of reforms that lower barriers to entry and dismissal costs. Estimates show that both policies induce non-negligible transitory employment losses. The strength of these effects varies depending on the underlying industry and labor market structure, and on cyclical conditions: The employment cost of deregulation is higher in economic downturns and negligible in good times. These findings prove robust to a set of specification and sensitivity checks and are confirmed after standard reverse causality and falsification tests
%K employment
%K short-term costs
%K job destruction
%K labor market regulation
%K product market regulation
%U https://journals.sagepub.com/doi/full/10.1177/0019793918766054