Quotation Leibrecht, Markus, Bellak, Christian. 2009. Does the impact of employment protection legislation on FDI differ by the low-skill intensity of sectors? An empirical investigation. The Leverhulme Centre for Research on Globalisation and Economic Policy Research Papers 21/2009.


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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

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Does the impact of employment protection legislation on FDI differ by the low-skill intensity of sectors? An empirical investigation
Title of whole publication The Leverhulme Centre for Research on Globalisation and Economic Policy Research Papers 21/2009
Year 2009
URL http://www.gep.org.uk/leverhulme/publications/Papers/2009/2009_21.php