This paper offers a deep review of the contemporary economic literature on the effects of changes in labour market institutions, employment protection in particular, on labour market performances and growth. It makes a detailed comparison between the Neo Keynesian approach and the Post Keynesian one showing that while Post Keynesian scholars share a critical view of the ineffectiveness of labour market deregulation, the Neo Keynesian paradigm contains contrasting conclusions aboutthe outcomes of flexibility. Nevertheless, international organizations (oecd in particular), often formulate their studies and policy recommendations neglecting thecomplexity of the scientific debate.
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