Welfare‐Improving Employment Protection

Dados Bibliográficos

ID9725641
AutoresMichèle Belot (0000-0002-6953-1200, University of Essex), Jan Boone (0000-0002-0958-2444, Tilburg University), Jan C Van Ours (0000-0002-0144-9956, Center for Economic and Policy Research), JAN VAN OURS
Ano2007
Volume74
Fascículo295
Páginas381-396
Data de publicação2007-08-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoEconomica (JOURNAL)
Identificadores do periódicoISSN: 0013-0427 • E-ISSN: 1468-0335
EditoraWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2006.00576.x
OpenAlexW2100291436
IdiomaEN
Citações recebidas28
Referências citadas13

This paper derives new results on the welfare effects of employment protection. Using data from 17 OECD countries, we show that there exists an inverse U‐shape relationship between employment protection and economic growth. Using a simple theoretical model with non‐contractible specific investments, we show that over some range increasing employment protection does indeed raise welfare. We also show that the optimal level of employment protection depends on other labour market features, such as the bargaining power of workers and the existence of wage rigidities like the minimum wage

Bargaining power · Contractible space · Economics · Labour economics · Market economy · Microeconomics · Minimum wage · Wage · Welfare · Firm Innovation and Growth · Labor market dynamics and wage inequality · Unemployment and Economic Growth