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Beliefs about the determinants of success and employment protection

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  • Kyriacou, Andreas P.

Abstract

We show that part of the international variation in employment laws is due to different beliefs about the impact of hard work as opposed to luck and connections on success. In societies where a greater proportion of people relate their life prospects to chance and connections, stronger employment protection is in place. The prevalence of such beliefs is likely to hamper labor market reforms.

Suggested Citation

  • Kyriacou, Andreas P., 2012. "Beliefs about the determinants of success and employment protection," Economics Letters, Elsevier, vol. 116(1), pages 31-33.
  • Handle: RePEc:eee:ecolet:v:116:y:2012:i:1:p:31-33
    DOI: 10.1016/j.econlet.2012.01.005
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    References listed on IDEAS

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    1. Gilles Saint-Paul, 2002. "The Political Economy of Employment Protection," Journal of Political Economy, University of Chicago Press, vol. 110(3), pages 672-701, June.
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    Cited by:

    1. María José Arteaga Garavito, 2016. "Justicia, Redistribución y Evasión Fiscal," Graduate theses (Spanish) TESG 005, CIDE, División de Economía.

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    More about this item

    Keywords

    Employment protection; Beliefs; Reverse causality; Instrumental variables;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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