Does the impact of employment protection legislation on FDI differ by the low-skill intensity of sectors? An empirical investigation

Markus Leibrecht, Christian Bellak

Publikation: Working/Discussion PaperWorking Paper/Preprint

Abstract

In line with previous literature this paper finds that employment protection legislation, especially regulations towards regular employment, has a negative impact on the volume of inward Foreign Direct Investment. Yet, we also find that the deterrent effect of inflexible labor markets is predominantly given for industries with relatively high shares of low skilled workers employed. This result is consistent with the view that high exit costs due to strict employment protection legislation matters particularly for mobile industries like the textile, food and wood industries which continuously seek for low labor cost locations
OriginalspracheEnglisch
Seitenumfang36
DOIs
PublikationsstatusVeröffentlicht - 1 Okt. 2009

Publikationsreihe

ReiheGEP Research Papers
Band21/2009

Zitat