@article{cbfdc86330df4f179174ec1b714252d9,
title = "Employment Protection and Firm Relocation: Theory and Evidence",
abstract = "We examine the determinants of the decision to relocate activities abroad for firms located in OECD countries. We argue that particular firm-specific features play a crucial role for the link between employment protection and relocation. Stricter employment protection laws over time in the current production location discourage firms{\textquoteright} relocation abroad. While larger, more productive firms and firms with higher labour intensities have, ceteris paribus, higher propensities to relocate, they also face higher exit barriers if the country from which they consider relocating has strict employment protection laws. Our predictions are supported empirically, using firm-level panel data for 28 OECD countries over the period 1997–2007.",
author = "Gerda Dewit and Holger G{\"o}rg and Yama Temouri",
note = "Funding Information: The authors wish to thank Dermot Leahy, Donal O'Neill, participants at the Kiel Institute and the Political Science Seminar at the University of Kiel, and seminar participants at Maynooth University for helpful comments on an early draft of the paper. Holger G{\"o}rg gratefully acknowledges financial support from the NORFACE ERA-NET (New Opportunities for Research Funding Agency Co-operation in Europe Network) Welfare State Futures Programme, Grant no. 462-14-120, and from the Leibniz Association through the Kiel Centre for Globalization. Publisher Copyright: {\textcopyright} 2018 The London School of Economics and Political Science",
year = "2019",
month = oct,
day = "1",
doi = "10.1111/ecca.12280",
language = "British English",
volume = "86",
pages = "663--688",
journal = "Economica",
issn = "0013-0427",
publisher = "Wiley-Blackwell Publishing Ltd",
number = "344",
}
