Employment Protection and Firm Relocation: Theory and Evidence
Gerda Dewit (),
Holger Görg and
Yama Temouri ()
Additional contact information
Gerda Dewit: National University of Ireland, Maynooth
Yama Temouri: Aston University
No 11500, IZA Discussion Papers from Institute of Labor Economics (IZA)
Abstract:
We examine the determinants of the decision to relocate activities abroad for firms located in OECD countries. We argue that particular firm-specific features play a crucial role for the link between employment protection and relocation. Stricter employment protection laws over time in the current production location discourage firms' relocation abroad. While larger, more productive firms and firms with higher labour intensities have, ceteris paribus, higher propensities to relocate, they also face higher exit barriers if the country from which they consider relocating has strict employment protection laws. Our predictions are supported empirically, using firm level panel data for 28 OECD countries over the period 1997-2007.
Keywords: employment protection; relocation; multinational enterprises (search for similar items in EconPapers)
JEL-codes: F23 J88 L23 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2018-04
New Economics Papers: this item is included in nep-bec, nep-lab, nep-law and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations:
Published - published in: Economica, 2019, 86 (344), 663-688
Downloads: (external link)
https://docs.iza.org/dp11500.pdf (application/pdf)
Related works:
Journal Article: Employment Protection and Firm Relocation: Theory and Evidence (2019) 
Working Paper: Employment protection and firm relocation: Theory and evidence (2018) 
Working Paper: Employment Protection and Firm Relocation: Theory and Evidence (2018) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp11500
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().