labour contracts and predict heterogeneous ERL effects across different systems of dismissal regulation. We then perform a … panel regression analysis, exploiting 2-digit panel data for 21 manufacturing sectors of USA, UK, India, France and Germany …

this effect by exploiting the time-series variation generated by staggered country-level changes in dismissal laws. We find … that within a country, innovation and economic growth are fostered by stringent laws governing dismissal of employees …

We provide empirical evidence that strong dismissal laws appear to have a positive effect on the innovative pursuits of … innovation, we identify the effect of dismissal laws by exploiting the time-series variation generated by staggered country … stringent laws governing dismissal of employees. In addition, stringent dismissal laws disproportionately influence innovation in …