Over the last few years, the debate on labor market reform has been at the center of economic policy debate in Argentina. This debate has been fueled by the sustained growth in the unemployment rate observed during the decade. One of the major targets of the attack on labor market regulation has...

Abstract The paper considers formally the mapping from distortions in the allocations of resources across firms to aggregate productivity. TFP gaps are characterized as the integral of a strictly concave function with respect to an employment-weighted measure of distortions. Size related...