Labor Market Reforms and Economic Growth: Theoretical and Empirical Perspectives

Luca Sorge(Department of Economics, Roma Tre University, Via Silvio D’Amico 77, 00145 Rome, Italy)

Abstract

This article delves into the intricate relationship between labor market reforms and economic growth, examining both theoretical and empirical perspectives. We analyze how various labor market reforms, including flexibility in wage determination, increased competition in the labor market, and the enhancement of worker skills and productivity, can stimulate economic growth. We also discuss the potential challenges and trade-offs that these reforms might pose, such as income inequality and social cohesion. Empirical evidence from various countries is presented to support the theoretical arguments, providing insights into the effectiveness of these reforms in promoting economic growth.

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DOI: http://dx.doi.org/10.26549/jesr.v6i1.15943