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In many countries, labor courts play a central role in the determination of firing costs by monitoring and supervising the procedures for dismissals, and, eventually, deciding severance payments mandated by the employment protection legislation (EPL). To get some insights about the impact of...
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Employment protection affects aggregate productivity via several channels in potentially contradicting ways, which … factors across plants, which has been shown in past studies to substantially reduce aggregate productivity. The study provides … product of labor and total factor productivity. The results show that higher cost of dismissing redundant workers is …
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Employment protection legislation aims to shield employees against unfair dismissal and earning reductions at the time of job loss. Theory suggests that employment protection stabilizes employment over cyclical upturns and downturns without necessarily increasing general unemployment. However,...
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