Welfare Effects of Employment Protection
Abstract
Employment protection is often related to costs incurred by firms when they fire a worker. The stability of the employment relationship, enhanced by employment protection, is also favourable to the productivity of the job. We analyse employment protection focusing on this trade-off between adjustment costs and productivity. We show that from a welfare point of view there is an optimal degree of employment protection.Download Info
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Bibliographic Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3396.Length:
Date of creation: May 2002
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Handle: RePEc:cpr:ceprdp:3396
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Related research
Keywords: employment protection; hold-up; human capital; reforms; welfare;Other versions of this item:
- Belot, M.V.K. & Boone, J. & Ours, J.C. van, 2002. "Welfare Effects of Employment Protection," Discussion Paper 2002-48, Tilburg University, Center for Economic Research.
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-02-18 (All new papers)
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