economics papers that explicitly study the effects of antitrust law and its enforcement on product and labor market outcomes. The most frequent outcomes analyzed in the papers include the competition level in an economy, the aggregate employment effects, and the reallocation of production across industries and sectors. In contrast, many typical labor market outcomes, such as earnings inequality and employment effects on particular groups, are rarely studied. Among all 79 PMR studies, only about half (33) directly measure outcomes for workers.

Figure 2 charts out the LMR evidence. In contrast to Figure 1, this map focuses exclusively on LMR outcomes (in green). This aligns with the goals of our study: to review the effects of regulations on labor markets while keeping in mind that some indirect effects also act through the product market side. The columns in Figure 2 match the different types of LMR studied in Part 4 of this review. As expected, we find a larger number of LMR than PMR studies that outline the implications for workers: Figure 2 depicts 114 papers (which, as described above, were all published after 2012 and do not include the studies in Betcherman (2012b)). Minimum wage studies are the most common type of LMR studies (62 papers), followed by mandated benefit studies (26). In contrast, the effects of unions and collective bargaining (8 studies) have been rarely studied since 2012. Common outcomes include employment effects, earnings, and labor reallocation; while migration, consumption, prices, and social cohesion are less-frequently considered outcomes. It should be noted that many of these labor market outcomes could be directly linked to changes in the structure of product markets (for example, labor reallocation across sectors). However, the LMR papers we reviewed rarely explicitly discuss such linkages and focus on the implications of a given reform on workers.

Throughout this review, we highlight the various channels through which PMR and LMR affect workers, noting that their relative importance is highly context-dependent. On one hand, the level of development of countries plays a substantial role. For example, in LMICs, where enforcement capabilities are typically low, minimum wage rules may have less bite than in high-income countries. On the other hand, the pre-existing regulatory framework may matter for how new regulations act upon the local labor market. For example, changes in PMR affecting firms’ mark-ups may lead to different employment effects depending on the LMR in place, given that the latter co-determines the relative price of labor. When pro-competitive regulation lowers mark-ups, firms typically increase their overall production and employ additional workers in order to do so. However, when labor is relatively more expensive than capital, this increase in employment will be lower than if it were the other way around.

# **3 Product Market Regulations**

## **3.1 How Do Product Market Regulations Affect Workers?**

The most prominent way in which PMR affect labor market outcomes is by altering the degree of competition in an economy (see for example, Dauda, 2020). In the presence of strong market power by individual firms, production quantities are often artificially restricted due to rent-seeking, 9