Dewit, Gerda; Görg, Holger; Montagna, Catia - Institute for the Study of Labor (IZA) - 2003
This paper examines how employment protection legislation affects location decisions of multinationals. Based on a … protection indices. We find that, while an "unfavourable" employment protection differential between a domestic and a foreign … location is inimical to foreign direct investment (FDI), a high domestic level of employment protection tends to discourage …