EMPLOYMENT PROTECTION LEGISLATION, MULTINATIONAL FIRMS, AND INNOVATION

• 成果类型: Article
• 署名作者: Griffith, Rachel; Macartney, Gareth
• 署名单位: University of London; London School Economics & Political Science; University of Manchester
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00348
• 发表日期: 2014-03
• 页码: 135-150
• 关键词: labor-market; technological regimes; life-cycle; unemployment; GROWTH; panel; institutions; INVESTMENT; indicators; location

摘要

The theoretical effects of labor regulations, such as employment protection legislation (EPL), on innovation is ambiguous. EPL increases job security, and the greater enforceability of job contracts may increase worker investment in innovative activity. But EPL increases firms' adjustment costs, which may lead to underinvestment in activities that are likely to require adjustment, including technologically advanced innovation. In this paper, we find empirical evidence that these effects are at work-in particular, a higher share of multinational enterprise innovative activity in countries with high EPL is technologically advanced.