Employment Protection Legislation and Job Reallocation across Sectors, Firms and Workers: A Survey

Arbeitspapier

This paper provides a review of the existing literature on the effects of employment protection legislation (EPL) on job allocation across industries, firms, and workers, and its implications for innovation and economic growth. We analyze empirical studies to assess how EPL influences resource allocation, firm dynamics, and labor market segmentation. The review highlights the heterogeneous effects of EPL on different firms and workers' groups. Additionally, we discuss the channels identified in the structural literature through which EPL-induced job reallocation affects productivity, innovation, and overall growth. While existing evidence demonstrates the significant influence of EPL on all these outcomes, further quantification of these effects remains a research challenge.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 16747

Classification and Topics

• Classification: Wirtschaft ; Labor Demand ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Innovation and Invention: Processes and Incentives
• Subject: JO8 ; job protection ; job allocation ; economic growth ; productivity ; innovation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cahuc, Pierre ; Palladino, Marco G.
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2024

Further information

• Last update: 10.03.2025, 11:44 AM CET