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Labour market regulations and capital intensity

Cette, Gilbert, Lopez, Jimmy, Mairesse, Jacques, (2016), “Labour market regulations and capital intensity”, VoxEu, 4 Νοεμβρίου

With structural reforms of labour markets currently being considered in several countries, including in southern Europe, assessing their impact is vital. This column investigates the effects of employment protection legislation on a variety of production factors. Structural reforms that increase labour flexibility – that is, which weaken employment protection legislation – could have a favourable impact on firms’ R&D investment and their hiring of low-skilled workers.

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