Employment protection legislation and the IT-sector in OECD countries

Jose Galdon-Sanchez ()

No 115, Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra from Departamento de Economía - Universidad Pública de Navarra

Abstract: This paper explores the relationship between employment protection legislation (EPL) and the share of employment in the IT-sector. Evidence from several OECD countries suggests that the importance of the IT-sector is smaller in economies with high levels of EPL than in economies with low levels. This shows up in the amount of resources dedicated to research on IT as well as in the share of employment in the sector. A simple model is provided to explain these facts. EPL affects both labor supply and labor demand in the same way resulting in lower employment equilibrium levels.

Keywords: new economy; information technology; unemployment duration (search for similar items in EconPapers)
JEL-codes: J32 J64 O3 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2001
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Related works:
Journal Article: Employment Protection Legislation and the IT-Sector in OECD Countries (2002)
Working Paper: Employment Protection Legislation and the IT-Sector in OECD Countries (2002)
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