Welfare effects of employment protection

Michèle Belot (), Jan Boone and J. C. van Ours
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J. C. van Ours: Tilburg University, Center for Economic Research

No 48, Discussion Paper from Tilburg University, Center for Economic Research

Abstract: Employment protection is often related to costs incurred by the firms when they hire a worker. The stability of the employment relationship, enhanced by employment protection, is also favorable to the productivity of the job. We analyze employment protection focusing on this trade-off between adjustment costs and productivity. We show that from a welfare point of view there is an optimal degree of employment protection.

JEL-codes: J41 J63 J68 (search for similar items in EconPapers)
Date: 2002
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Related works:
Working Paper: Welfare Effects of Employment Protection (2002)
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