Firing regulations and firm size in the developing world: evidence from differential enforcement

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Tarih

2012-11

Dergi Başlığı

Dergi ISSN

Cilt Başlığı

Yayıncı

Wiley-Blackwell

Erişim Hakkı

info:eu-repo/semantics/closedAccess

Araştırma projeleri

Organizasyon Birimleri

Dergi sayısı

Özet

This paper examines how stringent de facto firing regulations affect firm size throughout the developing world. A large firm level dataset is used across 63 countries and within country variation in the enforcement of the labor codes in countries with very different de jure firing regulations is explored. The findings strongly suggest that firms facing a stricter enforcement of firing regulations are on average smaller. This finding is interpreted as supportive of the fact that more stringent de facto firing regulations tend to reduce average employment. Robust evidence is found that this effect is stronger for more labor intensive manufacturing firms, especially those operating in low-technology sectors. Evidence also shows that this negative correlation does not hold in countries with a very weak rule of law.

Açıklama

Anahtar Kelimeler

Labor regulation, Employment, Employment protection legislation, Employment protection, Temporary contracts, Developing world, Firm size, Labor policy, Law enforcement, Manufacturing, Regulatory framework

Kaynak

Review of Development Economics

WoS Q DeÄŸeri

Q2

Scopus Q DeÄŸeri

Q2

Cilt

16

Sayı

4
SI

Künye

Almeida, R. K. & Susanlı, Z. B. (2012). Firing regulations and firm size in the developing world: Evidence from differential enforcement. Review of Development Economics, 16(4), 540-558. doi:10.1111/rode.12003