Employment Protection and Aggregate Unemployment

N. Groenewold

Working Papers from Tasmania - Department of Economics

Abstract: The effects on the aggregate unemployment rate of employment-protection provisions has been the subject of considerable debate. This paper shows that if firms pay efficiency wages to encourage effort in the workplace, the effect of increasing employment security is to increase the efficiency wage but not necessarily to increase unemployment.

Keywords: UNEMPLOYMENT; EMPLOYMENT; LABOUR MARKET; MANPOWER (search for similar items in EconPapers)
JEL-codes: J20 J21 J31 J64 J65 (search for similar items in EconPapers)
Pages: 18 pages
Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:fth:tasman:1996-05

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