Employment protection legislation and entrepreneurial activity

Liebregts, Werner; Stam, Erik

doi:10.1177/0266242619836358

Cited by 18 publications

(15 citation statements)

References 91 publications

(120 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Finally, we use indicators on employment protection that are aggregated at the country level. However, as Liebregts and Stam (2016) point out, this might be misleading, because, for instance, in the Netherlands, most employment protection regulations are laid down in collective agreements, in addition to the existing legislation. This aspect deserves further investigation at a more disaggregated level.…”

Section: Discussionmentioning

confidence: 99%

“…Because EPL increases firms’ firing costs, it may impact on job flows and the level of employment (Sá, 2011). Opponents of EPL argue that employment levels decrease, as given the costs of firing employees, attracting new workers is risky, and so, employers are reluctant to hire more of them (Liebregts and Stam, 2016). Thus, by imposing costs on firms’ adaptation to changes in demand and technology, EPL may affect not only job destruction but also job creation (Scarpetta, 2014).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Self-employment as a vehicle for labour market integration of immigrants and natives

Ulceluse¹,

Kahanec

2018

Int J of Manpower

View full text Add to dashboard Cite

Purpose The purpose of this paper is to investigate the effect of employment protection legislation (EPL) on self-employment in a comparative analysis between immigrants and natives. Specifically, it investigates whether, as a result of more stringent regulations, self-employment becomes a vehicle for better labour market integration for immigrants and natives, and for better matching between the supply and demand of labour and skills. Design/methodology/approach The authors use OECD indicators on the strictness of EPL, self-employment rates calculated for natives and immigrants from the EU Labour Force Survey and a range of control variables, in a longitudinal study covering 18 European countries over the period 1995–2013. The analysis employs a panel regression with random effects as the baseline model, with country and time fixed effects models serving for robustness checks. Findings The results indicate that EPL of regular contracts affects native self-employment positively, with some evidence of a negative effect for immigrants. On the other hand, EPL of temporary contracts positively affects immigrants’ self-employment. These results indicate that a stricter EPL crowds out incumbent native workers from the prime employment segment of regular contracts into self-employment, whereas a similar effect exists for immigrant workers in the segment of temporary contracts. This is consistent with the hypothesis of segmentation of labour market opportunities between insiders and outsiders, with implications for immigration, employment and entrepreneurship policies. Originality/value This is the first study to systematically study the effect of EPL on immigrant and native self-employment in a comparative framework. It elucidates to what extent self-employment serves as an alternative channel of labour market integration in response to less and more strict regulation of regular and temporary employment contracts. Distinguishing immigrant and native workers helps us understand how these effects may differ for outsiders and insiders in the labour market, as represented by the two groups.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Self-employment as a vehicle for labour market integration of immigrants and natives

Ulceluse¹,

Kahanec

2018

Int J of Manpower

View full text Add to dashboard Cite

show abstract

“…The design of the social security system may also benefit employment relative to selfemployment, causing entrepreneurial individuals to be intrapreneurs (Elert et al, 2019). Employment protections can have the same effect (Liebregts and Stam, 2019).…”

Section: Labor Market and Demographic Factorsmentioning

confidence: 99%

“…The earlier research has ex ante restricted the analysis to a particular set of variables or areas that the scholars deem to be most important. Examples include human capital (Stam, 2013), employment protection legislation (Liebregts and Stam, 2019), trust (Elert et al, 2019), or a sub-set of institutional factors (Bosma et al, 2018). This approach makes strong assumptions about what does not matter without examining the evidence.…”

Section: Introductionmentioning

confidence: 99%

Fertile soil for intrapreneurship: impartial institutions and human capital

Ljunge

Stenkula

2021

Journal of Institutional Economics

View full text Add to dashboard Cite

Intrapreneurs, entrepreneurial employees, constitute an important force behind innovations in the economy. Yet, what factors that promote intrapreneurship at the country level are an underdeveloped research area. This paper provides an important contribution regarding the methodological approach and the broad set of potential explanatory factors studied. Based on machine-learning techniques (Least Absolute Shrinkage and Selection Operator (LASSO) and Extreme Bounds Analysis (EBA)), we investigate the influence of over 60 factors capturing institutional, demographic, cultural, and developmental factors. We find that the quality of government measured as impartiality, i.e. that the public institutions treat the citizens in a non-discriminatory fashion and do not favor some groups or individuals, and the level of human capital, measured as the average years of schooling, are the most important factors predicting the level of intrapreneurship across countries. Instrumental variable results support a causal interpretation. The findings emphasize the importance of policy to establish well-functioning and impartial institutions as well as to promote higher education.

show abstract

“…On the whole, entrepreneurship is seen as the key mechanism for employment and productivity growth, making economies more competitive and innovative, and promoting social inclusion and equal opportunities. Accordingly, many countries have created institutional framework conditions to benefit entrepreneurialism among their citizens (Liebregts & Stam, 2019), based on a firm belief that individuals' entrepreneurial efforts have largescale impacts on the economic conditions and social development of a nation. Indeed, entrepreneurs implement their business ideas through new venture creation (Wright & Marlow, 2012), which results in a significant contribution to national output (Stam & Van Stel, 2011), increased national competitiveness (Aparicio et al 2016) and new job creation (Block et al 2018;Van Praag & Versloot, 2007).…”

Section: Introductionmentioning

confidence: 99%

Exploring the Effects of Types of Early-Stage Entrepreneurial Activity on Subjective Well-Being

Svetek

Drnovšek

2021

J Happiness Stud

View full text Add to dashboard Cite

Entrepreneurial activity has been seen as the single most important activity of individuals due to its role in the economic development of nations. However, little is known about the impact of entrepreneurial activity on the subjective well-being of nations beyond its economic impact. The purpose of this study is to explore the impact of different types of entrepreneurial activity – total entrepreneurial activity, opportunity-driven entrepreneurial activity and innovative entrepreneurial activity – on subjective well-being across nations. We consider three distinct mechanisms by which entrepreneurship may influence subjective well-being at the national level. Our panel data includes representative country-level data from 2008 to 2015 from five different data sources for 31 European countries. We employ four econometric models for analyzing the panel data: pooled OLS regression (POLS), fixed effects model (FE), random effects model (RE), and simultaneous equations model (3SLS). Our results suggest that opportunity-driven entrepreneurial activity has a positive impact on subjective well-being. In addition, we find that subjective well-being affects the level of opportunity-driven and innovative entrepreneurial activity. These findings have implications for policy-makers seeking to promote not only economic development but also subjective well-being in the nation.

show abstract

Employment protection legislation and entrepreneurial activity

Cited by 18 publications

References 91 publications

Self-employment as a vehicle for labour market integration of immigrants and natives

Self-employment as a vehicle for labour market integration of immigrants and natives

Fertile soil for intrapreneurship: impartial institutions and human capital

Exploring the Effects of Types of Early-Stage Entrepreneurial Activity on Subjective Well-Being

Contact Info

Product

Resources

About