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Employment Labor Protection and Innovation

Author

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  • Burcak Polat

Abstract

Employment labor protection (ELP) has recently been a focus of policy formation, in particular in respect to its impact on the incentives for firms to invest in productivity enhancing innovation and growth. Yet, the true relationship is still unclear, and the debate is ongoing. Thus, the main objective of this study is to examine the relationship between strict employment rights and new radical innovations in the Organization for Economic Co-operation and Development (OECD) countries for the period from 2006 to 2014. The study employed the between estimator (BE) of panel data analysis and found that strict employment rights and interest rates are negatively correlated with new radical innovation in the country.

Suggested Citation

  • Burcak Polat, 2016. "Employment Labor Protection and Innovation," Applied Economics and Finance, Redfame publishing, vol. 3(3), pages 258-262, August.
    • Handle: RePEc:rfa:aefjnl:v:3:y:2016:i:3:p:258-262
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    References listed on IDEAS

    as
    1. Saint-Paul, Gilles, 1997. "Is labour rigidity harming Europe's competitiveness? The effect of job protection on the pattern of trade and welfare," European Economic Review, Elsevier, vol. 41(3-5), pages 499-506, April.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Innovation; Labor Rights; Employment Labor Protection; Panel Data;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • J00 - Labor and Demographic Economics - - General - - - General
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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