We investigate the labor market effects of product market regulation on a sample of 37 million individuals from 191 regions in 19 European countries for the period 1998-2017. We find: (i) a detrimental impact of the network regulation on activity, unemployment and employment rates, particularly for the most vulnerable populations; (ii) insignificant or small effects of retail regulation; and (iii) negative effects of professional services regulations on unemployment and activity rates that offset each other in terms of employment. According to our simulation, the expected employment gains from network regulation reforms are substantial for many countries.
