Why is the Employment Protection Stricter in Europe than in the US?
AbstractIn this paper, we argue that the reason why the United States prefer a lower level of employment protection than the European countries lies in the differences in gains and costs from geographical mobility.We present a model where labor migration and employment protection are both determined endogenously.The labor market is modeled within a matching framework, where the employment protection reduces both the job finding and firing rates.Countries with low migration costs and high economic heterogeneity may prefer no employment protection so that workers can move quickly to better horizons rather than being maintained in low productive activities.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2001-79.
Date of creation: 2001
Date of revision:
Contact details of provider:
Web page: http://center.uvt.nl
Find related papers by JEL classification:
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-11-21 (All new papers)
- NEP-EEC-2001-11-21 (European Economics)
- NEP-LAB-2001-11-21 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chiara Bentivogli & Patrizio Pagano, 1999. "Regional Disparities and Labour Mobility: the Euro-11 versus the USA," LABOUR, CEIS, vol. 13(3), pages 737-760, 09.
- Hassler, John & Mora, José V Rodríguez & Storesletten, Kjetil & Zilibotti, Fabrizio, 2001.
"A Positive Theory of Geographic Mobility and Social Insurance,"
CEPR Discussion Papers
2964, C.E.P.R. Discussion Papers.
- John Hassler & José V. Rodríguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 2005. "A Positive Theory Of Geographic Mobility And Social Insurance," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(1), pages 263-303, 02.
- John Hassler & José Vicente Rodríguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 2003. "A Positive Theory of Geographic Mobility and Social Insurance," Working Papers 86, Barcelona Graduate School of Economics.
- John Hassler & José V. Rodríguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 2001. "A positive theory of geographic mobility and social insurance," Economics Working Papers 604, Department of Economics and Business, Universitat Pompeu Fabra.
- Hassler, John & Mora, Jose & Storesletten, Kjetil & Zilibotti, Fabrizio, 2002. "A positive theory of geographical mobility and social insurance," Seminar Papers 705, Stockholm University, Institute for International Economic Studies.
- John Hassler & José V. Rodriguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 2002. "A Positive Theory of Geographic Mobility and Social Insurance," CESifo Working Paper Series 791, CESifo Group Munich.
- Ronald Schettkat, 1997. "Employment Protection and Labour Mobility in Europe: an empirical analysis using the EU's labour force survey," International Review of Applied Economics, Taylor and Francis Journals, vol. 11(1), pages 105-118.
- Decressin, Jorg & Fatas, Antonio, 1995.
"Regional labor market dynamics in Europe,"
European Economic Review,
Elsevier, vol. 39(9), pages 1627-1655, December.
- Alun H. Thomas, 1994. "The Response of Wages and Labor Supply Movements to Employment Shocks Across Europe and the United States," IMF Working Papers 94/158, International Monetary Fund.
- Saint-Paul, Gilles, 2000. "The Political Economy of Labour Market Institutions," OUP Catalogue, Oxford University Press, number 9780198293323, September.
- Saint-Paul, G., 1996.
"The rise and persistence of rigidities,"
DELTA Working Papers
96-21, DELTA (Ecole normale supérieure).
- Hassler, John & Rodriguez Mora, Jose V., 1999. "Employment turnover and the public allocation of unemployment insurance," Journal of Public Economics, Elsevier, vol. 73(1), pages 55-83, July.
- Erol Taymaz & Sule Ozler, 2004. "Labor Market Policies and EU Accession: Problems and Prospects for Turkey," ERC Working Papers 0405, ERC - Economic Research Center, Middle East Technical University, revised Mar 2004.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Corry Stuyts).
If references are entirely missing, you can add them using this form.