Welfare Improving Employment Protection

Michèle Belot (), Jan Boone and Jan van Ours ()

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: This paper presents a theoretical model to show that in sectors where workers invest in firm specific knowledge employment protection legislation can raise employment, productivity and welfare. The model also predicts a U-shaped relation between firing costs and unemployment. Finally, it gives a rationale for the observation that more educated workers tend to have better protected jobs.

Keywords: employment protection; human capital; hold-up; reforms; welfare (search for similar items in EconPapers)
JEL-codes: J41 J63 J8 (search for similar items in EconPapers)
Date: 2004-06
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Related works:
Journal Article: Welfare-Improving Employment Protection (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:deg:conpap:c009_004

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