Berdugo, Binyamin; Hadad, Sharon - In: European Journal of Comparative Economics 9 (2012) 1, pp. 3-30
This paper analyzes the implication of employment protection legislation on a firm's screening process. We present a model in which human-capital-intensive firms (high-tech firms) with imperfect information about their workers' type attempt during a trial period to identify those incompetent...