Australian Labour Market Institutions, ‘Deregulation’ and the Open Economy

Abstract

AbstractLabour market ‘deregulation’ is a major economic policy issue in Australia. Some of the desire for deregulation has been part of a worldwide trend in OECD countries whilst some comes from more localised disquiet about the alleged effect of Australia’s industrial relations institutions on the economy. This article looks at the evidence em Australian labour market regulation and its relation to economic performance. The article finds that Australian labour market institutions have had little effect on efficiency but have provided important distributional outcomes. Furthermore it is argued that with ‘globalisation’ there is more reason to continue labour market protection not less to en..