Theoretical and empirical models provide ambiguous responses on the relationship among labor regulation, innovation and investment. Labor regulation tends to raise …rms’ adjustment costs. But, also labor regulation stimulates fi…rms to make innovations and investments to recover productivity in the long-run. In this paper we present a neo- Schumpeterian endogenous growth model, which explains how these opposite forces operate over time, and why a stricter labor regulation may positively a¤ect innovation and investment.

How labor regulation affects innovation and investment: A neo-Schumpeterian approach

CALCAGNINI, GIORGIO;GIOMBINI, GERMANA;TRAVAGLINI, GIUSEPPE
2016

Abstract

Theoretical and empirical models provide ambiguous responses on the relationship among labor regulation, innovation and investment. Labor regulation tends to raise …rms’ adjustment costs. But, also labor regulation stimulates fi…rms to make innovations and investments to recover productivity in the long-run. In this paper we present a neo- Schumpeterian endogenous growth model, which explains how these opposite forces operate over time, and why a stricter labor regulation may positively a¤ect innovation and investment.
2016
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11576/2642071
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