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Relaxed employment protection legislation, relocation, and social surplus
[Assouplissement de la législation de protection de l’emploi : plus d’attractivité ? plus de bien-être ?]

Author

Listed:
  • Sophie Lecostey

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

Assouplir sa législation de protection de l'emploi (LPE) permet-il toujours à un pays d'augmenter son attractivité et/ou son bien-être ? Une LPE contraignante réduit la flexibilité productive des firmes domestiques mais leur confère en retour un avantage stratégique lorsque ce sont des firmes oligopolistiques se livrant une concurrence en quantités. Cependant, cet avantage stratégique est réduit par la flexibilité d'allocation (possibilité de répartir la production entre les différents marchés). La réforme peut alors avoir des effets inattendus tels qu'une délocalisation hors du pays qui assouplit sa LPE, une diminution de l'incitation de firmes étrangères à s'y relocaliser ou une perte de surplus collectif même en l'absence de relocalisation.

Suggested Citation

  • Sophie Lecostey, 2022. "Relaxed employment protection legislation, relocation, and social surplus [Assouplissement de la législation de protection de l’emploi : plus d’attractivité ? plus de bien-être ?]," Post-Print hal-03631091, HAL.
    • Handle: RePEc:hal:journl:hal-03631091
    DOI: 10.3917/reco.731.0115
    as

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