This paper shows that the effects of employment protection critically depend on its enforcement. For this purpose, we … capture evasion of employment protection via market exit in a setting of monopolistic competition. We find that the number of … firms entering the market depends on firing costs only in the case of imperfect enforcement of employment protection …

Since the middle of the 1980s many European countries have reduced the strictness of their employment protection mainly …, Portugal, Spain and Sweden. The article explores the conditions of the reduction of employment protection and takes a closer …

significantly lower reductions in future employment probabilities. These findings suggest that compositional differences cause …

Reforms of employment protection (EPL) in Europe eased the recourse to temporary forms of employment while not reducing …

provision of labour market relevant information by former coworkers affects the employment probabilities and, if hired, the … results suggest a strong positive effect of a higher employment rate in a worker’s network of former coworkers on his re-employment … probability after displacement: a 10 percentage point increase in the prevailing employment rate in the network increases the re-employment …

We study the effects of employment protection taking into account that firms can invest in R&D or buy new technologies … innovation market. If employment protection is introduced, firms’ willingness to pay for product or process innovations increases …