The short answer is that it’s the wrong question. Now for the longer answer.The main tradeoff with regulation is output, not employment. If you increase the cost of making something, you need more people to make the same amount, or you need people to make something else instead, something you wouldn’t have wanted to make without the regulation. That’s why economists who study regulations measure their impacts on productivity and output, not jobs. But the topic is jobs, so let’s consider it.
There are three potential sources of unemployment in an economy, the level of aggregate demand, the trade balance and structural mismatch. Let’s look at each.
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