Does Employment Protection Reduce Productivity ? Evidence From U. S. States  

Oleh:

Autor, David H. ; Kerr, William R. ; Kugler, Adriana D.

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Economic Journal (EBSCO) vol. 117 no. 521 (Jun. 2007), page F189-F217.
Topik: productivity; employment protection; productivity; evidence
Fulltext: F189.pdf (571.4KB)

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Perpustakaan Pusat (Semanggi) Nomor Panggil: EE28.26 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Theory predicts that mandated employment protection may reduce productivity by distorting production choices. We use the adoption of wrongful - discharge protection by state courts in the US from 1970 to 1999 to evaluate the empirical link between dismissal costs and productivity. Drawing on establishment - level data from the Census Bureau, our estimates suggest that wrongful - discharge protection reduces employment flows and firm entry rates. Moreover, plants engage in capital deepening and experience a decline in total factor productivity, indicative of altered production techniques. Evidence of strong contemporaneous growth in employment, however, leads us to view our findings as suggestive but tentative.

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