search query: @author Saint-Paul, G. / total: 10
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| Author: | Saint-Paul, G. |
| Title: | Is labour rigidity harming Europe's competitiveness? The effect of job protection on the pattern of trade and welfare |
| Journal: | European Economic Review
1997 : VOL. 41:3-5, p. 499-534 |
| Index terms: | LABOUR COMPETITIVENESS ECONOMICS |
| Language: | eng |
| Abstract: | The author develops a model to analyse the implications of firing costs on international specialization. To avoid paying the firing cost, the country with a rigid labor market will tend to produce relatively secure goods, at a late stage of their product life cycle. An international product cycle emerges where new goods are first produced in the low firing cost country and then move to the high firing cost country. An increase in firing costs in the high firing cost country lowers welfare there and increases welfare in the low firing cost country. |
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