Abstract
Employment protection is often related to costs incurred by the firms when they hire a worker.The stability of the employment relationship, enhanced by employment protection, is also favorable to the productivity of the job.We analyze employment protection focusing on this trade-off between adjustment costs and productivity.We show that from a welfare point of view there is an optimal degree of employment protection.
Original language | Undefined/Unknown |
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Volume | 2002-48 |
Publication status | Published - 2002 |
Externally published | Yes |