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/10419/36844
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorBartelsman, Eric J.en_US
dc.contributor.authorGautier, Pieter A.en_US
dc.contributor.authorde Wind, Jorisen_US
dc.date.accessioned2010-05-04en_US
dc.date.accessioned2010-07-23T09:33:28Z-
dc.date.available2010-07-23T09:33:28Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/36844-
dc.description.abstractUsing a country-industry panel dataset (EUKLEMS) we uncover a robust empirical regularity, namely that high-risk innovative sectors are relatively smaller in countries with strict employment protection legislation (EPL). To understand the mechanism, we develop a two-sector matching model where firms endogenously choose between a safe technology with known productivity and a risky technology with productivity subject to sizeable shocks. Strict EPL makes the risky technology relatively less attractive because it is more costly to shed workers upon receiving a low productivity draw. We calibrate the model using a variety of aggregate, industry and micro-level data sources. We then simulate the model to reflect both the observed differences across countries in EPL and the observed increase since the mid-1990s in the variance of firm performance associated with the adoption of information and communication technology. The simulations produce a differential response to the arrival of risky technology between low- and high-EPL countries that coincides with the findings in the data. The described mechanism can explain a considerable portion of the slowdown in productivity in the EU relative to the US since 1995.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 4895en_US
dc.subject.jelJ65en_US
dc.subject.jelO38en_US
dc.subject.ddc330en_US
dc.subject.keywordEmployment protection legislationen_US
dc.subject.keywordexit costsen_US
dc.subject.keywordinformation and communications technologyen_US
dc.subject.keywordheterogeneous productivityen_US
dc.subject.keywordsectoral allocationen_US
dc.subject.stwArbeitnehmerschutzen_US
dc.subject.stwTechnologiewahlen_US
dc.subject.stwHochtechnologiesektoren_US
dc.subject.stwRisikoen_US
dc.subject.stwMehr-Sektoren-Modellen_US
dc.subject.stwProduktivitäten_US
dc.subject.stwInformationstechniken_US
dc.subject.stwSektorale Beschäftigungsstrukturen_US
dc.subject.stwAllokationen_US
dc.subject.stwVergleichen_US
dc.subject.stwEU-Staatenen_US
dc.subject.stwUSAen_US
dc.titleEmployment protection, technology choice, and worker allocationen_US
dc.typeWorking Paperen_US
dc.identifier.ppn625181581en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

Files in This Item:
File Description SizeFormat
625181581.pdf307.37 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.