Acharya, Viral V; Baghai, Ramin; Subramanian, Krishnamurthy - C.E.P.R. Discussion Papers - 2009
pursuits of firms and their employees. Using patents and citations as proxies for innovation and a time-varying index of labor … laws, we find that innovation is fostered by stringent labor laws, especially by laws governing dismissal of employees. We … exploit staggered country-level law changes. We also find that stringent labor laws disproportionately influence innovation in …