This paper formulates an endogenous growth model and uses it to inquire into the long-run impact of work-sharing arrangements on economic growth. We show that the styles of wage contract, namely salary-style and hourly-style contracts, are a key factor in determining the long-run growth effects...

Existing studies either overlook the importance of the juridical enforcement of employment protection legislation in determining the labor market consequences of dismissal payments or else neglect the possibly judicial biases caused by a tight labor market due to the assumption of exogenous...