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Mandatory costs by firm size thresholds: firm location, growth and death in Sri Lanka

Abidoye, Babatunde O.; Orazem, Peter F.; Vodopivec, Milan - In: IZA Journal of Labor & Development 3 (2014), pp. 1-20

Sri Lanka's Termination of Employment of Workmen Act (TEWA) requires that firms with 15 or more workers justify layoffs and provide generous severance pay to displaced workers, with smaller firms being exempted. Although formally subject to TEWA, firms in Export Promotion Zones (EPZs) do not...

Persistent link: https://www.econbiz.de/10012018481

Mandatory costs by firm size thresholds : firm location, growth and death in Sri Lanka

Abidoye, Babatunde O.; Orazem, Peter F.; Vodopivec, Milan - In: IZA journal of labor & development 3 (2014), pp. 1-20

Sri Lanka’s Termination of Employment of Workmen Act (TEWA) requires that firms with 15 or more workers justify layoffs and provide generous severance pay to displaced workers, with smaller firms being exempted. Although formally subject to TEWA, firms in Export Promotion Zones (EPZs) do not...

Persistent link: https://www.econbiz.de/10011765131

Firing Cost and Firm Size: A Study of Sri Lanka's Severance Pay System

Abidoye, Babatunde; Orazem, Peter; Vodopivec, Milan - Department of Economics, Iowa State University - 2008

sector. A theoretical model shows that firms subject to TEWA will tend to mass at or below the threshold of 14 workers until … they get an atypically large productivity shock that would propel them beyond the threshold. EPZ firms will be largely … likely to add employees than nonEPZ firms. Above the threshold, nonEPZ firms are more likely to shed workers while EPZ firms …

Persistent link: https://www.econbiz.de/10004997736

Employment protection and temporary work agencies

Baumann, Florian; Mechtel, Mario; Stähler, Nikolai - 2008

Employers who use temporary agency staff in contrast to regular staff are not affected by employment protection regulations when terminating a job. Therefore, services provided by temporary work agencies may be seen as a substitute for regular employment. In this paper, we analyze the effects of...

Persistent link: https://www.econbiz.de/10010298743

Labor market institutions: Curse or blessing?

Ochsen, Carsten; Welsch, Heinz - 2006

Previous literature has identified considerable non-pecuniary costs to macroeconomic fluctuation and uncertainty. The present paper investigates whether and to what extent labor market institutions can mitigate those costs. We study how life satisfaction of European citizens is affected by...

Persistent link: https://www.econbiz.de/10010319232

Employment Protection and Takeovers

Dessaint, Olivier - 2017

Labor restructuring is a key driver of takeovers and the associated synergy gains worldwide. In a difference-in-differences research design, we show that major increases in employment protection reduce takeover activity by 14-27% and the combined firm gains (synergies) by over half. Consistent...

Persistent link: https://www.econbiz.de/10012971600

Shielding Firm Value : Employment Protection and Process Innovation

Bena, Jan - 2020

Following state-level legal changes that increase labor dismissal costs, firms increase their innovation in new processes that facilitate the adoption of cost-saving production methods, especially in industries with a large share of labor costs in total costs. Firms with high innovation ability...

Persistent link: https://www.econbiz.de/10012851726

Employment Protection and Temporary Work Agencies

Baumann, Florian - 2016

Persistent link: https://www.econbiz.de/10012991077

Reforming Labor Market Institutions : Unemployment Insurance and Employment Protection

Blanchard, Olivier J. - 2005

This paper explores the characteristics of both optimal and actual unemployment insurance and employment protection. It then sketches potential paths for reforms in both rich and middle-income countries. It reaches three main conclusions: There is a role for both state-provided unemployment...

Persistent link: https://www.econbiz.de/10014068551

Measurability of Employment Protection Systems

Del Conte, Maurizio; Devillanova, Carlo; Liebman, Stefano; … - 2006

The paper analyses the method adopted by the index of employment protection systems developed in 1999 by the OECD and discusses its reliability and shortcomings, in particular with regards to Italy. The paper highlights a series of problems of method arising from the aggregation of the...

Persistent link: https://www.econbiz.de/10014068568

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