Employment Protection and Product Market Competition

Sebastian Kessing

Scandinavian Journal of Economics, 2006, vol. 108, issue 2, 339-352

Abstract: A firm facing employment protection will defend its market position more fiercely than a rival firm operating without such restrictions. However, ex ante such firms may be more reluctant to expand. For the benchmark case of contest competition, the defensive effect dominates. A firm facing employment protection has a stronger average market position.

Date: 2006
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Working Paper: Employment Protection And Product Market Competition (2004)
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