Labor regulations and European venture capital

Arbeitspapier

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.

Object Details

• ISBN: 978-952-6699-51-6
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Bank of Finland Research Discussion Papers ; No. 30/2013

Classification and Topics

• Classification: Wirtschaft ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies ; Labor Force and Employment, Size, and Structure ; Unemployment Insurance; Severance Pay; Plant Closings ; Entrepreneurship ; New Firms; Startups ; Innovation and Invention: Processes and Incentives ; Management of Technological Innovation and R&D ; Economywide Country Studies: Europe
• Subject: employment protection regulations ; dismissal costs ; unemployment insurance benefits ; private equity ; venture capital ; entrepreneurship

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bozkaya, Ant ; Kerr, William R.
• Event: Veröffentlichung
• (who): Bank of Finland
• (where): Helsinki
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/212270
• Last update: 10.03.2025, 11:44 AM CET