Labor market institutions and industrial performance: an evolutionary study

Yılmaz Kılıç Aslan () and Erol Taymaz
Additional contact information
Yılmaz Kılıç Aslan: Anadolu University
Authors registered in the RePEc Author Service: Yilmaz Kiliçaslan

A chapter in Schumpeterian Perspectives on Innovation, Competition and Growth, 2009, pp 207-222 from Springer

Abstract: Abstract This study investigates the impact of labor market institutions on industrial performance from a Schumpeterian perspective. We suggest that labor market institutions play a very important role in the process of creative destruction, because they may create an environment that encourages and enforces innovation, and help to reallocate resources, most importantly labor, through swift elimination of weak performers. We specifically look at the effects of the quantity of labor market regulations and inter-industry wage differentials on labor productivity for a panel of 44 countries for the period 1965–1999. Our findings suggest that those countries that introduce more regulations on conditions of employment and wages achieve higher levels of productivity. Moreover, wage compression raises productivity by reallocating resources to productive activities.

Keywords: Labor market regulation; Flexibility; Industrial structure; Productivity; J8; J24; J31; O43; O47 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Labor market institutions and industrial performance: an evolutionary study (2008)
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:spr:sprchp:978-3-540-93777-7_12

Ordering information: This item can be ordered from
http://www.springer.com/9783540937777

DOI: 10.1007/978-3-540-93777-7_12

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().