scholarly journals Employment Protection and Firm Relocation: Theory and Evidence

2018 ◽  
Author(s):  
Gerda Dewit ◽  
Holger Gorg ◽  
Yama Temouri
Economica ◽  
2018 ◽  
Vol 86 (344) ◽  
pp. 663-688
Author(s):  
Gerda Dewit ◽  
Holger Görg ◽  
Yama Temouri

2014 ◽  
pp. 126-140
Author(s):  
O. Mironenko

Employers incur costs while fulfilling the requirements of employment protection legislation. The article contains a review of the core theoretical models and empirical results concerning the impact of these costs on firms’ practices in hiring, firing, training and remuneration. Overall, if wages are flexible or enforcement is weak, employment protection does not significantly influence employers’ behavior. Otherwise, stringent employment protection results in the reduction of hiring and firing rates, changes in personnel selection criteria, types of labour contracts and dismissal procedures, and, in some cases, it may lead to the growth of wages and firms’ investments to human capital.


2011 ◽  
Vol 11 (2) ◽  
pp. 1850225 ◽  
Author(s):  
Miki Malul ◽  
Mosi Rosenboim ◽  
Tal Shavit ◽  
Shlomo Yedidia Tarba

This paper explores the role of employment protection when powerful external crises reduce demand for products. We first present a theoretical framework that shows that employment protection has a U-shaped effect on abnormal unemployment during a negative exogenous shock to an economy. Using data from the 33 OECD countries, we analyze how the level of employment protection affected the stability of unemployment rates during the recent global economic crisis. The results suggest that countries with an intermediate level of employment protection will have more stable unemployment rates during a world crisis. The policy implication of our paper is that countries should seek a medium level of employment protection that may act as an automatic stabilizer of the economy on the macro level.


2021 ◽  
Vol 69 ◽  
pp. 101972
Author(s):  
Massimiliano Bratti ◽  
Maurizio Conti ◽  
Giovanni Sulis

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