Essays On The Political Economy Of Labor Market Regulation

Download or read book Essays on the Political Economy of Labor Market Regulation written by Bjoern Bruegemann and published by . This book was released on 2004 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: (Cont.) This argument is evaluated in a dynamic model of labor turnover and employment protection. The third chapter presents an argument according to which employment protection is a policy that is difficult to introduce. If a country decides to introduce employment protection, it is reasonable to assume that firms can adjust employment levels before protection is actually implemented. Firms then have an incentive to dismiss some workers today in order to avoid high employment protection in the future. Anticipating this, these workers may oppose the introduction of employment protection. Delayed implementation can give rise to situations in which both low and high employment protection are stable political outcomes.