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This paper examines the economic effects of employment protection legislation in a sample of developed and developing countries. Implementing a difference-indifferences test lessens the potentially severe endogeneity and omitted variable problems associated with cross-country regressions. This...
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This paper analyzes the effect of firing costs on aggregate productivity growth. For this purpose, a model of … firms, and is sustained as entrants imitate the best incumbents. In this framework, firing costs not only induce … misallocation of labor, but also affect growth by affecting firms' exit decisions. Importantly, charging firing costs only to …
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