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innovation, we identify the effect of dismissal laws by exploiting the time-series variation generated by staggered country …-level law changes. Using fixed effect panel regressions and difference-in-difference tests, we find that innovation is fostered by … stringent laws governing dismissal of employees. In addition, stringent dismissal laws disproportionately influence innovation in …
Persistent link: https://www.econbiz.de/10012753196
innovation and thereby economic growth. Theoretically, dismissal laws make it costly for firms to arbitrarily discharge employees …. This enables firms to commit to not punish short-run failures of employees. Because innovation is inherently risky and …, but path-breaking, projects thereby fostering firm-level innovation. I provide empirical evidence supporting this thesis …
Persistent link: https://www.econbiz.de/10011858380
This paper documents the construction of a novel database on coverage of workers by employment protection legislation (EPL), across over 90 countries around 2010. Coverage is shown to be an important, yet largely neglected, aspect of employment protection institution, complementing our knowledge...
Persistent link: https://www.econbiz.de/10011573205
Is privatization in a country related to the stringency of its employment protection laws (EPL) – and, if so, how? We address this question using privatization deals in fourteen European countries over three decades and all the changes in EPL within a country. Using traditional...
Persistent link: https://www.econbiz.de/10012975362
There is increasing pressure for the flexibility of labour markets both in current EU member states and candidate countries. The paper aims to estimate the strictness of employment protection regulation, one of the most relevant aspects of labour market flexibility, and the degree of its actual...
Persistent link: https://www.econbiz.de/10013319259
Do employment protection laws hinder privatization? Using privatization deals in fourteen European countries from 1977-2003 and within-country variation in employment protection laws, we find that stringent employment protection laws significantly deter privatization. The fear of job cuts...
Persistent link: https://www.econbiz.de/10014044132
This article surveys the literature and adds to the evidence on the impact of employment protection legislation on employment. While stringent employment protection contributes to less turnover and job reallocation, the effects on aggregate employment and unemployment over the business cycle are...
Persistent link: https://www.econbiz.de/10008936965
We exploit the adoption of U.S. state-level labor protection laws to study the effect of employment protection on corporate investment and growth. We find that, following the adoption of these laws, capital expenditures decrease, resulting in firms growing sales at a slower rate. Our findings...
Persistent link: https://www.econbiz.de/10012903752
We study how employment protection laws (EPLs) affect corporate cash-holding decision. By exploiting within-country changes in EPLs across 20 OECD countries as a source of variation in labor adjustment costs, we show that following an increase in the stringency of EPLs, firms' cash holdings...
Persistent link: https://www.econbiz.de/10012855548
This paper analyses the causal effects of weaker dismissal protection on the incidence of long-term sickness ( six weeks). We exploit a German policy change, which shifted the threshold exempting small establishments from dismissal protection from five to ten workers. Using administrative data,...
Persistent link: https://www.econbiz.de/10012267172