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The effects of structural reforms on employment outcomes in Portugal: a short-term analysis
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This paper evaluates the short-term effects of both product and labour market reforms on employment growth. Using Portuguese firm-level data, covering the period 2006-2015, we show that product market deregulation brings employment gains. Concerning the labour market, while expenditure in active labour market policies and reductions of the tax wedge are also associated with positive employment developments, reforms targeted at lowering employment protection are associated with lower employment growth, at least during the short-term.
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Structural reforms Labour market Product market Employment