EconPapers    
Economics at your fingertips  
 

Employment Protection, Product Market Regulation and Firm Selection

Winfried Koeniger and Julien Prat

Economic Journal, 2007, vol. 117, issue 521, 302-332

Abstract: Why are firm and job turnover rates so similar across OECD countries? We argue that this may be due to the joint regulation of product and labour markets. For our analysis, we build a stochastic equilibrium model with search frictions and heterogeneous multiple-worker firms. This allows us to distinguish firm entry and exit from hiring and firing in a model with equilibrium unemployment. We show that firing costs, sunk entry costs and bureaucratic flow costs have countervailing effects on firm and job turnover as different types of firms select to operate in the market. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (56)

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

Related works:
Working Paper: Employment Protection, Product Market Regulation and Firm Selection (2006) Downloads
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:ecj:econjl:v:117:y:2007:i:521:p:302-332

Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0013-0133

Access Statistics for this article

Economic Journal is currently edited by Martin Cripps, Steve Machin, Woulter den Haan, Andrea Galeotti, Rachel Griffith and Frederic Vermeulen

More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().

 
Page updated 2025-03-22
Handle: RePEc:ecj:econjl:v:117:y:2007:i:521:p:302-332