How labor market institutions affect job creation and productivity growth

Magnus Henrekson ()

IZA World of Labor, 2020, No 38v2, 38

Abstract: Economic growth requires factor reallocation across firms and continuous replacement of technologies. Labor market institutions influence economic dynamism by their impact on the supply of a key factor, skilled workers to new and expanding firms, and the shedding of workers from declining and failing firms. Growth-favoring labor market institutions include portable pension plans and other job tenure rights, health insurance untied to the current employer, individualized wage-setting, and public income insurance systems that encourage mobility and risk-taking in the labor market.

Keywords: entrepreneurship; gazelles; high-growth firms; innovation; labor market policy; productivity (search for similar items in EconPapers)
JEL-codes: H32 J63 L25 L5 M13 O31 O43 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Journal Article: How labor market institutions affect job creation and productivity growth (2014)
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