Employment protection and firm relocation: theory and evidence

"We examine the determinants of the decision to relocate activities abroad for firms located in OECD countries. We argue that particular firm-specific features play a crucial role for the link between employment protection and relocation. Stricter employment protection laws over time in the cur...

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Bibliographic Details
Main Authors: Dewit, Gerda, Görg, Holger, Temouri, Yama
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2018
IZA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19399175124911173579-employment-protection-and-firm.htm
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author Dewit, Gerda
Görg, Holger
Temouri, Yama
author_facet Dewit, Gerda
Görg, Holger
Temouri, Yama
collection Library items
description "We examine the determinants of the decision to relocate activities abroad for firms located in OECD countries. We argue that particular firm-specific features play a crucial role for the link between employment protection and relocation. Stricter employment protection laws over time in the current production location discourage firms' relocation abroad. While larger, more productive firms and firms with higher labour intensities have, ceteris paribus, higher propensities to relocate, they also face higher exit barriers if the country from which they consider relocating has strict employment protection laws. Our predictions are supported empirically, using firm level panel data for 28 OECD countries over the period 1997-2007."
format TEXT
geographic OECD countries
id 19399175124911173579_05a1e1ada96e471cbd47557c08a075b6
institution ETUI-European Trade Union Institute
is_hierarchy_id 19399175124911173579_05a1e1ada96e471cbd47557c08a075b6
is_hierarchy_title Employment protection and firm relocation: theory and evidence
language English
physical 37 p.
Digital
publishDate 2018
publisher Bonn
IZA
spellingShingle Dewit, Gerda
Görg, Holger
Temouri, Yama
international relocation of industry
employment security
multinational enterprise
labour law
Employment protection and firm relocation: theory and evidence
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=133139195131
title Employment protection and firm relocation: theory and evidence
topic international relocation of industry
employment security
multinational enterprise
labour law
url https://www.labourline.org/KENTIKA-19399175124911173579-employment-protection-and-firm.htm