November 2007

IZA DP No. 3166: Education, Market Rigidities and Growth

published in: Economics Letters, 2009, 102 (1), 62-65

This note investigates the effects of the education level, product market rigidities and employment protection legislation on growth. It exploits macro-panel data for OECD countries. For countries close to the technological frontier, education and rigidities are significantly related to TFP growth. The contribution of the interaction between product market regulation and labour market rigidity seems particularly substantial.