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Trust and employment protection legislation

Author

Listed:
  • Jayakody, Shashitha
  • Morelli, David
  • Nica, Melania
  • Oberoi, Jaideep

Abstract

We examine the role of generalized social trust in substituting for employment protection legislation. Using foreign direct investment from the US to a sample of OECD countries, we find that trust diminishes the importance of formal employment regulations in investment attractiveness.

Suggested Citation

  • Jayakody, Shashitha & Morelli, David & Nica, Melania & Oberoi, Jaideep, 2024. "Trust and employment protection legislation," Economics Letters, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523004676
    DOI: 10.1016/j.econlet.2023.111441
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    References listed on IDEAS

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    More about this item

    Keywords

    Trust; Informal institutions; Labor laws; Investment;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • J80 - Labor and Demographic Economics - - Labor Standards - - - General
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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