How labor regulation affects innovation and investment: A neo-Schumpeterian approach

Giorgio Calcagnini, Germana Giombini and Giuseppe Travaglini

No 1604, Working Papers from University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini

Abstract: Theoretical and empirical models provide ambiguous responses on the relationship among labor regulation, innovation and investment. Labor regulation tends to raise frms' adjustment costs. But, also labor regulation stimulates firms to make innovations and investments to recover productivity in the long-run. In this paper we present a neo- Schumpeterian endogenous growth model, which explains how these opposite forces operate over time, and why a stricter labor regulation may positively affect innovation and investment. Length: 44 pages

Keywords: Endogenous growth model; Labor regulation; Innovation; Investment (search for similar items in EconPapers)
JEL-codes: J5 O4 (search for similar items in EconPapers)
Date: 2016, Revised 2016
New Economics Papers: this item is included in nep-gro, nep-ino, nep-lab and nep-tid
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http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_16_04.pdf First version, 2016 (application/pdf)

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Working Paper: How labor regulation a.ects innovation and investment: A neo-Schumpeterian approach (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:urb:wpaper:16_04

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