Job Security Policies and Trade Union Behaviour in an Open Economy

Ole Risager and Jan Rose Sorensen

Canadian Journal of Economics, 1999, vol. 32, issue 1, 139-151

Abstract: In this paper, the authors analyze how job security policies, which in practice result in higher firing costs, affect long-run employment and investment in a two-country model with free trade in goods and capital. The effects turn out to depend crucially on the preferences of trade unions and, in particular, on the degree of wage flexibility. If wages are downward inflexible, job security policies give rise to a clear trade-off between achieving low employment variability over the business cycle and a good employment and investment performance in the long run.

JEL-codes: J5 (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://links.jstor.org/sici?sici=0008-4085%281999 ... SPATU%3E2.0.CO%3B2-U (text/html)
only available to JSTOR subscribers

Related works:
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:cje:issued:v:32:y:1999:i:1:p:139-151

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().