How labor market institutions affect job creation and productivity growth

Magnus Henrekson ()

IZA World of Labor, 2014, No 38, 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.

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: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://wol.iza.org/articles/how-labor-market-insti ... ctivity-growth-1.pdf (application/pdf)
http://wol.iza.org/articles/how-labor-market-insti ... -productivity-growth (text/html)

Related works:
Journal Article: How labor market institutions affect job creation and productivity growth (2020)
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:iza:izawol:journl:y:2014:n:38

Access Statistics for this article

IZA World of Labor is currently edited by Pierre Cahuc

More articles in IZA World of Labor from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Institute of Labor Economics (IZA) ().