Janiak, Alexandre; Wasmer, Etienne - Institute for the Study of Labor (IZA) - 2014
Employment protection (EPL) has a well known negative impact on labor flows as well as an ambiguous but often negative … effect on employment. In contrast, its impact on capital accumulation and capital-labor ratio is less well understood. The … available empirical evidence suggests a non-monotonic relation between capital-labor ratios and EPL: positive at very low levels …