@TechReport{iza:izadps:dp1946,
            	author={Ebell, Monique and Haefke, Christian},
            	title={Product Market Deregulation and the U.S. Employment Miracle},
            	year={2006},
	month={Jan},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={1946},
            	url={https://www.iza.org/publications/dp1946},
	abstract={We consider the dynamic relationship between product market entry regulation and equilibrium unemployment. The main theoretical contribution is combining a job matching model with monopolistic competition in the goods market and individual wage bargaining. Product market competition affects unemployment by two channels: the output expansion effect and a countervailing effect due to a hiring externality. Competition is then linked to barriers to entry. We calibrate the model to US data and perform a policy experiment to assess whether the decrease in trend unemployment during the 1980's and 1990's could be attributed to product market deregulation. Our quantitative analysis suggests that under individual bargaining, a decrease of less than two tenths of a percentage point of unemployment rates can be attributed to product market deregulation, a surprisingly small amount.},
	keywords={barriers to entry;product market competition;wage bargaining},
            }