Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212270 
Year of Publication: 
2013
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 30/2013
Publisher: 
Bank of Finland, Helsinki
Abstract: 
European nations substitute between employment protection regulations and labor market expenditures (e.g., unemployment insurance benefits) for providing worker insurance. Employment regulations more directly tax firms making frequent labor adjustments than other labor market insurance mechanisms. Venture capital investors are especially sensitive to these labor adjustment costs. Nations favoring labor market expenditures as the mechanism for providing worker insurance developed stronger venture capital markets over 1990-2008, especially in high volatility sectors. In this context, policy mechanisms are more important than the overall level of worker insurance.
Subjects: 
employment protection regulations
dismissal costs
unemployment insurance benefits
private equity
venture capital
entrepreneurship
JEL: 
G24
J21
J65
L26
M13
O31
O32
O52
Persistent Identifier of the first edition: 
ISBN: 
978-952-6699-51-6
Document Type: 
Working Paper

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