Human capital, employment protection and growth in Europe

Conti, Maurizio; Sulis, Giovanni

doi:10.1016/j.jce.2015.01.007

Cited by 32 publications

(34 citation statements)

References 64 publications

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“…The findings discussed so far also shed some interesting insights into the transmission channel between employment protection legislation and productivity growth. Indeed, various recent empirical studies have found that employment protection legislation is associated to lower total factor productivity growth at the industry level (Bassanini et al (2009) and Conti and Sulis (2015), among the others). In turn, the literature on misallocation cited above suggests that a sizeable share of sectoral productivity growth is associated to the net entry component (e.g.…”

Section: Baseline Resultsmentioning

confidence: 99%

“…Reassuringly, the interaction between EPL and industry reallocation in the US is always negative and statistically significant; moreover, we find, somewhat counterintuitively, that countries with larger costs of insolvency tend to have higher exit rates in high employment reallocation industries. 21 In the remaining columns, we instead examine whether EPL continues to display a negative and statistically significant effect when we interact it with other industry characteristics that can be thought to influence entry and exit rates, such as firm turnover intensity (column 6), the growth opportunities in the industry (column 7), physical capital intensity (column 8) and financial dependency (column 9). Reassuringly, we find that the negative effect of the interaction of employment reallocation and EPL is robust, with an order of magnitude very similar to the OLS one.…”

Section: Robustness Checksmentioning

confidence: 99%

“…Reassuringly, we find that the negative effect of the interaction of employment reallocation and EPL is robust, with an order of magnitude very similar to the OLS one. 22 Finally, in column 10 we consider the possibility of a differential effect of 21 In unreported regressions, but available from the authors upon requests, we have controlled for interactions between real and country per capita GDP, the ICGR index of the quality of institutions and the degree of openness to trade. Our main results are confirmed.…”

Section: Robustness Checksmentioning

confidence: 99%

“…In addition, in this case our main results are unaffected. 23 See, for instance, Conti and Sulis (2015) and van Schaik and van de Klundert (2013) for empirical evidence and Aghion and Howitt (2006) for a theoretical discussion.…”

Section: Disentangling Employment Protection Legislationmentioning

confidence: 99%

“…15 15 See Bassanini and Garnero (2013) and Conti and Sulis (2015) for an application of this two-step estimator.…”

mentioning

confidence: 99%

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Firm dynamics and employment protection: Evidence from sectoral data

2017

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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. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Firm Dynamics and Employment ProtectionIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. In this paper we analyse the impact of employment protection legislation (EPL) on firms' entry and exit rates for a large sample of industries of thirteen countries selected from the most recent version of the OECD Structural and Business Statistics Database. Using a differences-in-differences identification strategy, we find that more stringent EPL is associated to lower entry and exit rates, particularly in industries characterized by higher job reallocation intensity. We also find that both collective and individual dismissal regulations reduce firms' entry and exit rates. Interestingly, our results suggest that the negative effects of EPL is stronger in the case of firms between one and nine employees while, in the case of larger ones, results are not clear-cut. An extensive sensitivity analysis confirm the robustness of our findings.JEL Classification: J65, L11, L26

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Section: Baseline Resultsmentioning

confidence: 99%

Section: Robustness Checksmentioning

confidence: 99%

Section: Robustness Checksmentioning

confidence: 99%

Section: Disentangling Employment Protection Legislationmentioning

confidence: 99%

“…15 15 See Bassanini and Garnero (2013) and Conti and Sulis (2015) for an application of this two-step estimator.…”

mentioning

confidence: 99%

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Firm dynamics and employment protection: Evidence from sectoral data

2017

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RETRACTED ARTICLE: Does the increase of labor protection intensity promote regional economic growth? Evidence from China

Fu²,

Fuxia³

et al. 2022

Electron Commer Res

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What drives TFP long-run dynamics in five large European economies?

2021

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The aim of this paper is to study the long-run cointegrating relationship of TFP in a panel of five large European economies, namely France, Germany, Italy, Spain, and UK. We test whether TFP is determined by the so-called “capital misallocation effects, scale effects, and labor market effects”. By considering aggregate data, over the period 1983–2017, we employ dynamic panel cointegration techniques to identify the long-run component of TFP. We get two main results. First, the interest rate, the real compensation and the real exchange rate have a positive impact on TFP. Then, the incidence of temporary employment (a proxy of labor market flexibility) has a negative effect on TFP. Moreover, for robustness, we run a panel VECM to check for causalities among the variables. Notably, this further excercise confirms the existence of a strong and positive long-run relationship between TFP and prices. We conclude that coordinated policies on the issue of interest rate, exchange rate, labour cost and regulation, may allow to reassemble the productivity slowdown puzzle and strengthen the European economic structure.

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Human capital, employment protection and growth in Europe

Cited by 32 publications

References 64 publications

Firm dynamics and employment protection: Evidence from sectoral data

Firm dynamics and employment protection: Evidence from sectoral data

RETRACTED ARTICLE: Does the increase of labor protection intensity promote regional economic growth? Evidence from China

What drives TFP long-run dynamics in five large European economies?

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