|
EconStor >
Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/20127
|
| | |
| Title: | | Collective Dismissal Cost, Product Market Competition and Innovation  |
| Authors: | | Koeniger, Winfried |
| Issue Date: | | 2003 |
| Series/Report no.: | | IZA Discussion paper series 888 |
| Abstract: | | Collective dismissal costs are an important part of employment protection legislation (EPL) and make firms' exit more costly. We show in a model with step-by-step innovations that dismissal costs spur innovation if product markets are not too competitive: technologically more advanced firms endogenously exit with smaller probability so that there is a dynamic incentive to innovate. But dismissal costs decrease the absolute value of firms and induce exit. These opposite effects and their dependence on the policy mix of EPL and product market regulation explain why empirical studies have difficulties to find a negative effect of EPL on innovation. |
| Subjects: | | step-by-step innovations employment protection legislation exit cost Schumpeterian growth |
| JEL: | | L16 J65 O31 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/20127
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|