Does Employment Protection Reduce Productivity? Evidence from US States
Bibliographic Data
| ID | 9707370 |
|---|---|
| Authors | David H Autor (MIT and NBER, Harvard Business School), David Autor (0000-0002-6915-9381), William R Kerr (0000-0001-7350-075X, MIT and NBER, Harvard Business School), Adriana Kugler (0000-0003-0022-4429, Center for Economic and Policy Research), Adriana D Kugler (University of Houston, NBER, CEPR and IZA) |
| Year | 2007 |
| Volume | 117 |
| Issue | 521 |
| Pages | F189-F217 |
| Publication date | 2007-06-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2007.02055.x |
| OpenAlex | W2125129154 |
| Language | EN |
| Citations received | 59 |
| References cited | 29 |
Theory predicts that mandated employment protection may reduce productivity by distorting production choices. We use the adoption of wrongful-discharge protection by state courts in the US from 1970 to 1999 to evaluate the empirical link between dismissal costs and productivity. Drawing on establishment-level data from the Census Bureau, our estimates suggest that wrongful-discharge protection reduces employment flows and firm entry rates. Moreover, plants engage in capital deepening and experience a decline in total factor productivity, indicative of altered production techniques. Evidence of strong contemporaneous growth in employment, however, leads us to view our findings as suggestive but tentative. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007
Economic growth · Economic history · Economics · Political science · Productivity · Firm Innovation and Growth · Labor market dynamics and wage inequality · Labor Movements and Unions
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| Unique citing works | 59 |
|---|---|
| Citations per year | 3,11 |
| Citation span | 2007 - 2026 (20) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 59 |