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Employment protection and industry innovation

Author

Listed:
  • Gavin Murphy
  • Iulia Siedschlag
  • John McQuinn

Abstract

We examine the impact of the strictness of employment protection legislation (EPL) on innovation intensity. To this purpose, we use a panel of annual data from Organisation for Economic Co-operation and Development countries and analyze the variation of innovation intensity within country between industries. Our estimates indicate that stricter EPL led to significantly lower innovation intensity in industries with higher job layoff propensity. Our findings are robust to additional industry covariates and other labor market institutions that may affect innovation performance and industry job layoff propensity.

Suggested Citation

  • Gavin Murphy & Iulia Siedschlag & John McQuinn, 2017. "Employment protection and industry innovation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(3), pages 379-398.
    • Handle: RePEc:oup:indcch:v:26:y:2017:i:3:p:379-398.
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    File URL: http://hdl.handle.net/10.1093/icc/dtw036
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    Citations

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    Cited by:

    1. Traverso, Silvio & Vatiero, Massimiliano & Zaninotto, Enrico, 2024. "Automation and flexible labor contracts: Firm-level evidence from Italy," GLO Discussion Paper Series 1425, Global Labor Organization (GLO).
    2. Chengde You & Huishan Qiu & Zhuojie Pi & Mengyuan Yu, 2023. "Sustainable Enterprise Development in the Manufacturing Sector: Flexible Employment and Innovation in China," Sustainability, MDPI, vol. 15(10), pages 1-30, May.
    3. Margaret Dalziel, 2018. "Why are there (almost) no randomised controlled trial-based evaluations of business support programmes?," Palgrave Communications, Palgrave Macmillan, vol. 4(1), pages 1-9, December.
    4. Armanda Cetrulo & Valeria Cirillo & Dario Guarascio, 2018. "Weaker jobs, weaker innovation. Exploring the temporary employment-product innovation nexus," LEM Papers Series 2018/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Siedschlag, Iulia & Lawless, Martina & Di Ubaldo, Mattia, 2017. "Investment in knowledge-based capital and its contribution to productivity growth: a review of international and Irish evidence," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT336.

    More about this item

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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