Enterprise Formation and Labor Market Institutions
AbstractThe paper introduces a model of enterprise formation in a unionized economy with labor protection and wage bargaining. Enterprise formation is subject to future market risk and is shaped by labor market institutions in the post-entry stage. The predictions of the model are tested in cross-section OECD data on 19 economies over 1978-98. Support is found for the view that enterprise formation is adversely affected by economic risks, unemployment compensation, union power, and labor protection variables.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 359.
Date of creation: 2000
Date of revision:
Entrepreneurship; labor protection; labor unions;
Other versions of this item:
- Kanniainen, V. & Vesala, T., 2000. "Enterprise Formation and Labor Market Institutions," University of Helsinki, Department of Economics 483, Department of Economics.
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
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