Enterprise Formation and Labor Market Institutions

The paper introduces a model of enterprise formation in a unionized economy with labor protection and wage bargaining. Enterprise formation is subject to future market risk and is shaped by labor market institutions in the post-entry stage. The predictions of the model are tested in cross-section OECD data on 19 economies over 1978-98. Support is found for the view that enterprise formation is adversely affected by economic risks, unemployment compensation, union power, and labor protection variables.

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Year of publication:	2000
Authors:	Kanniainen, Vesa ; Vesala, Timo
Institutions:	CESifo
Subject:	Entrepreneurship \| labor protection \| labor unions

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Extent:	application/pdf
Series:	CESifo Working Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 359
Classification:	J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment ; J24 - Human Capital; Skills; Occupational Choice; Labor Productivity ; J51 - Trade Unions: Objectives Structure, and Effects ; M13 - Entrepreneurship
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005406064