Barriers to Reallocation and Economic Growth: The Effects of Firing Costs

• 成果类型: Article
• 署名作者: Mukoyama, Toshihiko; Osotimehin, Sophie
• 署名单位: Georgetown University; University of Quebec; University of Quebec Montreal
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20170170
• 发表日期: 2019
• 页码: 235-270
• 关键词: Employment protection; Aggregate productivity; endogenous growth; size distribution; firm size; LABOR; misallocation; distortions; INNOVATION; imitation

摘要

We study how factors that hinder the reallocation of inputs across firms influence aggregate productivity growth. We extend Hopenhayn and Rogerson's (1993) firm-dynamics model to allow for endogenous innovation. We evaluate the effects of firing taxes on reallocation, innovation, and productivity growth. We find firing taxes can have opposite effects on entrants' innovation and incumbents' innovation, and the overall outcome depends on the relative strengths of these forces. In the entrant-driven growth calibration, firing taxes reduce aggregate productivity growth, whereas aggregate productivity growth increases in the incumbent-driven growth calibration.