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Sponsored Artificial Intelligence: A Modern Approach, Global Edition Artificial Intelligence: A Modern Approach, Global Edition

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Lars Schaefer

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Open access Aug 2026

Labor Market Rigidity and Employment: Firm-level Evidence

We examine the effect of labor market rigidity on firms’ employment decisions in OECD countries using a rich firm-level panel dataset covering 164,048 firm-year observations. Exploiting intertemporal variation in country-level employment protection legislation (EPL), we document a trade-off. While stricter EPL reduces...

M. Koman, M. Rapp, Lars Schaefer et al. · 0 citations

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