Based on comprehensive regression analysis, the authors find that weak wage growth and a smaller labour share of national income significantly reduce labour productivity growth. They conclude that supply-side labour market reforms have contributed to reducing labour productivity growth: this...

<title>Abstract</title> Nickell <italic>et al</italic>. (2005) have frequently been cited as empirical evidence that labor market rigidities cause high unemployment. We find that their model is <underline>not</underline> robust. Leaving their database unchanged and changing three details in their estimation procedure, it turns out that several...