This policy brief examines the effectiveness of policies which aim to dismiss labour market institutions, in the name of competitiveness, across the European Union (EU). It also assesses the evidence which supports a positive relationship between deregulation and decentralization and productivity.

The new publication also explores the negative consequences of deregulation, especially regarding the redistribution of power among the social actors, quality of work, and wage and income inequality, which cast doubt on the desirability of these policies as tools for the achievement of smart, inclusive and sustainable growth with ‘more and better jobs’ in the labour market. The policy implications, which suggest that if companies want to improve their productivity, then they should focus amongst other things on upgrading the human capital of their employees, reshaping job design towards more teamwork-oriented work organisation, and incentivise employees through group-based performance-related pay systems, is also examined within this new policy brief.

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