Economics Seminar | Labor market rigidity and employment: Firm-level evidence
| Event | Labor market rigidity and employment: Firm-level evidence |
|---|---|
| Speaker | Assoc Prof Matjaž Koman University of Ljubljana, Slovenia |
| Date | 17 April 2019 (Wednesday) |
| Time | 12:00pm – 1:00pm |
| Venue | HSS Meeting Room 4 (HSS-04-71) |
About the Seminar
We examine the effect of labor market rigidity on firm’s employment choices in OECD countries. The results of a firm-level analysis exploiting intertemporal variation in employment protection legislation (EPL) suggest a trade-off: While increasing EPL lowers the output-sensitivity of firm’s employment, it simultaneously reduces firms’ overall employment. Moreover, firms seem to substitute employment by additional investment in net assets in response to increasing EPL, in particular in labor-intensive industries.