Employment protection and unemployment benefits: on technology adoption and job creation in a matching model

Bibliographic Details
Main Author: Lommerud, Kjell Erik
Publication Date: 2018
Other Authors: Straume, Odd Rune, Vagstad, Steinar
Format: Article
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: https://hdl.handle.net/1822/65682
Summary: We analyse the effects of different labour-market policies (employment protection, unemployment benefits, and payroll taxes) on job creation and technology choices in a model where firms are matched with workers of different productivity and wages are determined by ex post bargaining. The model is characterized by two intertwined sources of inefficiency, namely a matching externality and a hold-up externality associated with the bargaining strength of workers. The results depend on the relative importance of the two externalities and on worker risk aversion. Flexicurity, meaning low employment protection and generous unemployment insurance, can be optimal if workers are sufficiently risk-averse and the hold-up problem is relatively important.
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spelling Employment protection and unemployment benefits: on technology adoption and job creation in a matching modelFlexicurityunemployment insuranceSocial SciencesWe analyse the effects of different labour-market policies (employment protection, unemployment benefits, and payroll taxes) on job creation and technology choices in a model where firms are matched with workers of different productivity and wages are determined by ex post bargaining. The model is characterized by two intertwined sources of inefficiency, namely a matching externality and a hold-up externality associated with the bargaining strength of workers. The results depend on the relative importance of the two externalities and on worker risk aversion. Flexicurity, meaning low employment protection and generous unemployment insurance, can be optimal if workers are sufficiently risk-averse and the hold-up problem is relatively important.We thank an anonymous referee for very valuable comments and suggestions. O. R. Straume acknowledges the financial support provided by the European Regional Development Fund (ERDF) through the Operational Program Factors of Competitiveness (COMPETE); and by national funds received through the Portuguese Foundation for Science and Technology (FCT) under the research grant PEst-C/EGE/UI3182/2013.WileyUniversidade do MinhoLommerud, Kjell ErikStraume, Odd RuneVagstad, Steinar2018-07-012018-07-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/1822/65682engLommerud, K. E., Straume, O. R., & Vagstad, S. (2018, July). Employment Protection and Unemployment Benefits: On Technology Adoption and Job Creation in a Matching Model. The Scandinavian Journal of Economics. Wiley. http://doi.org/10.1111/sjoe.122440347-052010.1111/sjoe.12244info:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2024-05-11T06:03:14Zoai:repositorium.sdum.uminho.pt:1822/65682Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-28T15:39:25.347098Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv Employment protection and unemployment benefits: on technology adoption and job creation in a matching model
title Employment protection and unemployment benefits: on technology adoption and job creation in a matching model
spellingShingle Employment protection and unemployment benefits: on technology adoption and job creation in a matching model
Lommerud, Kjell Erik
Flexicurity
unemployment insurance
Social Sciences
title_short Employment protection and unemployment benefits: on technology adoption and job creation in a matching model
title_full Employment protection and unemployment benefits: on technology adoption and job creation in a matching model
title_fullStr Employment protection and unemployment benefits: on technology adoption and job creation in a matching model
title_full_unstemmed Employment protection and unemployment benefits: on technology adoption and job creation in a matching model
title_sort Employment protection and unemployment benefits: on technology adoption and job creation in a matching model
author Lommerud, Kjell Erik
author_facet Lommerud, Kjell Erik
Straume, Odd Rune
Vagstad, Steinar
author_role author
author2 Straume, Odd Rune
Vagstad, Steinar
author2_role author
author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Lommerud, Kjell Erik
Straume, Odd Rune
Vagstad, Steinar
dc.subject.por.fl_str_mv Flexicurity
unemployment insurance
Social Sciences
topic Flexicurity
unemployment insurance
Social Sciences
description We analyse the effects of different labour-market policies (employment protection, unemployment benefits, and payroll taxes) on job creation and technology choices in a model where firms are matched with workers of different productivity and wages are determined by ex post bargaining. The model is characterized by two intertwined sources of inefficiency, namely a matching externality and a hold-up externality associated with the bargaining strength of workers. The results depend on the relative importance of the two externalities and on worker risk aversion. Flexicurity, meaning low employment protection and generous unemployment insurance, can be optimal if workers are sufficiently risk-averse and the hold-up problem is relatively important.
publishDate 2018
dc.date.none.fl_str_mv 2018-07-01
2018-07-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://hdl.handle.net/1822/65682
url https://hdl.handle.net/1822/65682
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Lommerud, K. E., Straume, O. R., & Vagstad, S. (2018, July). Employment Protection and Unemployment Benefits: On Technology Adoption and Job Creation in a Matching Model. The Scandinavian Journal of Economics. Wiley. http://doi.org/10.1111/sjoe.12244
0347-0520
10.1111/sjoe.12244
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Wiley
publisher.none.fl_str_mv Wiley
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron:RCAAP
instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron_str RCAAP
institution RCAAP
reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
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