Discussion paper

DP3396 Welfare Effects of Employment Protection

Employment protection is often related to costs incurred by firms when they fire a worker. The stability of the employment relationship, enhanced by employment protection, is also favourable to the productivity of the job. We analyse employment protection focusing on this trade-off between adjustment costs and productivity. We show that from a welfare point of view there is an optimal degree of employment protection.

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Citation

van Ours, J, J Boone and M Belot (2002), ‘DP3396 Welfare Effects of Employment Protection‘, CEPR Discussion Paper No. 3396. CEPR Press, Paris & London. https://cepr.org/publications/dp3396

A computer class at a rural secondary school in La Ceja del Tambo, Colombia
Charlotte Kesl/World Bank
VoxEU Column

Quantifying the link between educational policies and macroeconomic productivity

    ![](../../../../../../../../../../var/folders/34/zq18d8kx7kbgby0j06p_j6t40000gn/T/TemporaryItems/NSIRD_screencaptureui_EM2XPo/Screenshot 2022-01-04 at 17.01.16.png)
  • Education
    • ![](../../../../../../../../../../var/folders/34/zq18d8kx7kbgby0j06p_j6t40000gn/T/TemporaryItems/NSIRD_screencaptureui_EM2XPo/Screenshot 2022-01-04 at 17.01.16.png)
  • Productivity and Innovation