Autori:
Leonardi, Marco,
Pica, Giovanni,
Cingano, Federico,
Messina, JuliànTitolo:
Employment protection legislation, capital investment and access to credit: evidence from ItalyPeriodico:
Ministero dell'Economia e delle Finanze. Dipartimento del Tesoro. Working paperAnno:
2014 - Fascicolo:
4 - Pagina iniziale:
1 - Pagina finale:
32This paper estimates the causal impact of dismissal costs on capital deepening and
productivity exploiting a reform that introduced unjust-dismissal costs in Italy for firms
below 15 employees, leaving firing costs unchanged for larger firms. We show that the
increase in firing costs induces an increase in the capital-labour ratio and a decline in
total factor productivity in small firms relative to larger firms after the reform. Our results
indicate that capital deepening is more pronounced at the low-end of the capital
distribution - where the reform hit arguably harder - and among firms endowed with a
larger amount of liquid resources. We also find that stricter EPL raises the share of
high-tenure workers, which suggests a complementarity between firm-specific human
capital and physical capital in moderate EPL environments.
SICI: 1972-411X(2014)4<1:EPLCIA>2.0.ZU;2-6
Testo completo:
http://www.dt.tesoro.it/export/sites/sitodt/modules/documenti_it/analisi_progammazione/working_papers/WP_N._4_-_2014.pdfEsportazione dati in Refworks (solo per utenti abilitati)
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