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Zoekopdracht: faculteit: "FEB" en publicatiejaar: "2011"

AuteursE.J. Bartelsman, P.A. Gautier, J. de Wind
TitelEmployment protection, technology choice, and worker allocation
UitgeverDe Nederlandsche Bank
PlaatsAmsterdam
Jaar2011
Pagina's56
SerietitelDNB working paper
Serienummer295
FaculteitFaculteit Economie en Bedrijfskunde
Instituut/afd.FEB: Research Institute in Economics and Econometrics Amsterdam (RESAM)
SamenvattingWe show empirically that high-risk innovative sectors are relatively small in countries with strict employment protection legislation (EPL). To understand the mechanism, we develop a two-sector matching model where firms endogenously choose between safe and risky technology. Simulations with our calibrated model are consistent with the data: Strict EPL discourages choosing the emerging risky technology because it is more costly to shed workers upon receiving a bad productivity draw. This mechanism helps explain the lowdown in productivity in the EU relative to the US since the mid-1990s that often is associated with lagging adoption of information technology in the EU.
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