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Page count: 23

In this paper we compare non-enforceable and enforceable measures of labor rigidities as a measure of the quality of labor institutions and test whether such labor labor rigidites are conducive to long run growth. We find than non-enforceable labor regulations do not have a bearing in economic growth but enforceable labor regulations do. In fact, when using a GMM-IV method for a panel data of countries during the period 1970-2000 that accounts for weak endogeneity we find that such link is negative and statistically significant. It appears that excessive labor rigidities are thus negative linked with long run economic growth.