The Effects of Employment Protection on the Choice of Risky Projects
AbstractWe consider a firm that is subject to employment protection laws that limit the firm's ability to fire labor. In particular, we suppose that though a firm which shuts down can fire all its workers, it may fire no fewer. Compared to a firm that is subject to no employment protection, a firm constrained in firing will prefer a risk-free project over a risky one, but may prefer the riskier of two risky projects.
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Bibliographic InfoPaper provided by California Irvine - School of Social Sciences in its series Papers with number 00-05.
Length: 15 pages
Date of creation: 2000
Date of revision:
Contact details of provider:
Postal: UNIVERSITY OF CALIFORNIA IRVINE, SCHOOL OF SOCIAL SCIENCES, IRVINECALIFORNIA 91717 U.S.A.
EMPLOYMENT ; LABOUR ; RISK;
Other versions of this item:
- Glazer, A. & Kanniainen, V., 2000. "The Effects of Employment Protection on the Choice of Risky Projects," University of Helsinki, Department of Economics 487, Department of Economics.
- Amihai Glazer & Vesa Kanniainen, 2002. "The Effects of Employment Protection on the Choice of Risky Projects," CESifo Working Paper Series 689, CESifo Group Munich.
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
- K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
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