Does Employment Protection Inhibit Technical Diffusion?

Roberto Samaniego ()

No 51, Computing in Economics and Finance 2004 from Society for Computational Economics

Abstract: I ask whether differences in labor market performance between the US and Europe can be attributed to an interaction between employment protection legislation (EPL) and an acceleration in the rate of capital-embodied technical change associated with the advent of information technologies. I find that EPL is associated with a slowing in the diffusion of new technologies. I also find that an acceleration in the rate of embodied technical change has a negligible effect on employment in an undistorted economy. In addition, in the presence of EPL, employment decreases in the long run after such a shock

Keywords: embodiment; vintage capital; dismissal costs; employment protection; information technology (search for similar items in EconPapers)
JEL-codes: J63 J65 O33 O38 (search for similar items in EconPapers)
Date: 2004-08-11
New Economics Papers: this item is included in nep-dge and nep-ino
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Can technical change exacerbate the effects of labor market sclerosis (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:sce:scecf4:51

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