Employment Protection Legislation and the IT-Sector in OECD Countries
AbstractThis paper explores the relationship between employment protection legislation (EPL) and the share of employment in the IT sector. Evidence from several OECD countries suggests that the importance of the IT sector is smaller in economies with high levels of EPL than in economies with low levels. This shows up in the amount of resources dedicated to research on IT as well as in the share of employment in the sector. A simple model is provided to explain these facts. EPL affects both labor supply and labor demand in the same way resulting in lower employment equilibrium levels.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (REL - Recherches Economiques de Louvain) with number 2002025.
Date of creation: 01 Jun 2002
Date of revision:
New Economy; Information technology;
Other versions of this item:
- José E. Galdón-Sánchez, 2002. "Employment Protection Legislation and the IT-Sector in OECD Countries," Recherches économiques de Louvain, De Boeck Université, vol. 68(1), pages 169-184.
- José Enrique Galdón Sánchez, 2001. "Employment protection legislation and the IT-sector in OECD countries," Documentos de Trabajo - Lan Gaiak Departamento de EconomÃa - Universidad PÃºblica de Navarra 0115, Departamento de Economía - Universidad Pública de Navarra.
- J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
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