Employment protection and the market for innovations

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may Employment Protection and the Market for Innovations AbstractWe study the effects of employment protection taking into account that firms can invest in R&D or buy new technologies in order to restore their productivity. To do so we develop an equilibrium matching model with an imperfect labor and innovation market. If employment protection is introduced, firms' willingness to pay for product or process innovations increases. This shifts economic activity towards firms specializing in process and product innovation and triggers entry of new start-ups. We calibrate our model to match aggregate US labor and product market statistics and show that our model generates the estimated negative impact of wrongful dismissal laws in the US on productivity and the positive effect on the number of innovations and firms.JEL-Code: J640, J650, O310, O380.

El papel de la formalidad en el acceso al crédito para las micro y pequeñas empresas

“…Therefore, there need more formalization program of such firms can be a potentially beneficial policy in the short term. MSEs owned by female are found more likely to be access to credit than those owned males, there is a gender dimension to access to credit (Wellalage and Locke, 2013), (Bastgen and Holzner, 2017), (Aga and Reilly, 2011) . Moreover, when firms are member of business association, this impossibility to access to credit and reduce financial constraints, because there is a networking theory related with supply trade and credit arrangements between firms.…”

The determinants of employers’ use of temporary contracts in the frictional labor market

“…The results of this paper regarding employers' choice of purpose in using temporary contracts will not be substantially affected by this extension as long as permanent and temporary workers are mutually substitutable in the production process. However, the dismissal costs (or the labor market's rigidity) will affect employers' investment decisions regarding research and development and their choice of the type of innovation pursued (Bastgen & Holzner, 2017;Saint-Paul, 2002). A change in technological choice may alter the result of an optimal choice of contract types as well as the purpose for using temporary contracts.…”

Growth and heterogeneity of human capital: Effects of the expansion of higher education on the income increase in Brazilian municipalities

“…Recently, Bastgen and Holzner (2017) showed an important relationship between development, innovation and employment protection. According to the authors, formal employment and its protection by legislation mean that companies keep workers employed even in low productivity periods.…”