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 Department of Economics in its series University of Helsinki, Department of Economics with number 487.
Length: 15 pages
Date of creation: 2000
Date of revision:
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LABOUR ; PROTECTIONISM ; RISK;
Other versions of this item:
- Amihai Glazer & Vesa Kanniainen, 2002. "The Effects of Employment Protection on the Choice of Risky Projects," CESifo Working Paper Series 689, CESifo Group Munich.
- Glazer, A. & Kanniainen, V., 2000. "The Effects of Employment Protection on the Choice of Risky Projects," Papers 00-05, California Irvine - School of Social Sciences.
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
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