Rigidities in Employment Protection and Exporting
A large number of studies have shown that contribution of exporters to economic growth and development is much higher than non-exporting firms. This evidence has lead governments to improve their trade policies in order to increase foreign exposure...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100510115506 http://hdl.handle.net/10986/3788 |
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okr-10986-37882021-04-23T14:02:12Z Rigidities in Employment Protection and Exporting Şeker, Murat ADJUSTMENT PROCESS AGGREGATE GROWTH AGGREGATE PRODUCTIVITY AGGREGATE PRODUCTIVITY GROWTH BUSINESS ENVIRONMENT BUSINESS HOTELS BUSINESS SERVICE BUYERS COMPETITIVENESS COMPETITORS CORRELATION MATRIX CREATING JOBS CREATIVE DESTRUCTION CROSS-INDUSTRY ANALYSIS CROSS-SECTIONAL DATA CUSTOMS DATA ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATE EMPLOYMENT LEVEL EMPLOYMENT LEVELS EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RELATIONSHIP ENTERPRISE SURVEYS EQUIPMENT EXISTING WORKFORCE EXPORT MARKET EXPORT MARKETS FINANCIAL INSTITUTIONS FINANCIAL SERVICES FIRING COSTS FIRM LEVEL FIRM PERFORMANCE FIRM SIZE FIRM TURNOVER FLEXIBLE LABOR MARKETS FOREIGN DIRECT INVESTMENT FOREIGN MARKETS FOREIGN OWNERSHIP GENERAL EQUILIBRIUM GLOBAL ECONOMY GOVERNMENT SERVICES INDUSTRY PRODUCTIVITY INNOVATION INNOVATIONS INSPECTIONS INTERNATIONAL MARKETS INTERNATIONAL TRADE JOB CREATION JOB CREATION RATE JOB CREATION RATES JOB DESTRUCTION JOB DESTRUCTION RATES JOB FLOWS JOB SECURITY JOBS LABOR ADJUSTMENT LABOR DEMAND LABOR LAWS LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET INSTITUTIONS LABOR MARKET REFORMS LABOR MARKET RIGIDITIES LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REALLOCATION LABOR REGULATION LABOR REGULATIONS MANUFACTURERS MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MARKET ENTRY MULTI-PLANT FIRM MULTI-PLANT FIRMS NET JOB CREATION NEW MARKETS NEW TECHNOLOGIES PERMANENT WORKERS PRIVATE SECTOR PROBIT REGRESSIONS PRODUCT MARKET PRODUCT MARKET REGULATION PRODUCTION WORKERS PRODUCTIVITIES PRODUCTIVITY LEVELS PUBLIC SERVICES R&D REGULATORY REFORMS RESULT RESULTS RETAIL TRADE ROBUSTNESS ANALYSIS SEARCH SEARCHES SECURITY SERVICES SENSITIVITY ANALYSIS SERVICE SECTOR SERVICE SECTORS SEVERANCE PAYMENTS SMALL FIRMS SURVIVAL RATE SURVIVAL RATES TARGETS TELECOMMUNICATIONS TEMPORARY WORKERS TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TRADE REFORMS UNEMPLOYMENT USES WAGE BARGAINING WAGE RATE WAGE RATES WAGES WEB WORKER WORKERS WORLD TRADE A large number of studies have shown that contribution of exporters to economic growth and development is much higher than non-exporting firms. This evidence has lead governments to improve their trade policies in order to increase foreign exposure of firms. However, improvements in trade policies can only be fully effective when they are complemented with other regulatory reforms that improve the investment climate for firms. This study focuses on a particular aspect of investment climate, namely employment protection legislation, and shows how these regulations discourage firms from exporting. Using a rich set of firm level data from 26 countries in the Eastern Europe and Central Asia region, the author shows that firms that cannot create new jobs due to restrictive labor regulations are less likely to export. Evidence shows that firms that plan to export expand their size before they start to export. However the rigidities in labor markets make this adjustment costly. Higher costs of labor decrease operating profits and lead to a higher threshold value of productivity required for entering export markets. As a result, a smaller fraction of firms chooses to export. 2012-03-19T18:39:48Z 2012-03-19T18:39:48Z 2010-05-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100510115506 http://hdl.handle.net/10986/3788 English Policy Research working paper ; no. WPS 5303 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ADJUSTMENT PROCESS AGGREGATE GROWTH AGGREGATE PRODUCTIVITY AGGREGATE PRODUCTIVITY GROWTH BUSINESS ENVIRONMENT BUSINESS HOTELS BUSINESS SERVICE BUYERS COMPETITIVENESS COMPETITORS CORRELATION MATRIX CREATING JOBS CREATIVE DESTRUCTION CROSS-INDUSTRY ANALYSIS CROSS-SECTIONAL DATA CUSTOMS DATA ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATE EMPLOYMENT LEVEL EMPLOYMENT LEVELS EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RELATIONSHIP ENTERPRISE SURVEYS EQUIPMENT EXISTING WORKFORCE EXPORT MARKET EXPORT MARKETS FINANCIAL INSTITUTIONS FINANCIAL SERVICES FIRING COSTS FIRM LEVEL FIRM PERFORMANCE FIRM SIZE FIRM TURNOVER FLEXIBLE LABOR MARKETS FOREIGN DIRECT INVESTMENT FOREIGN MARKETS FOREIGN OWNERSHIP GENERAL EQUILIBRIUM GLOBAL ECONOMY GOVERNMENT SERVICES INDUSTRY PRODUCTIVITY INNOVATION INNOVATIONS INSPECTIONS INTERNATIONAL MARKETS INTERNATIONAL TRADE JOB CREATION JOB CREATION RATE JOB CREATION RATES JOB DESTRUCTION JOB DESTRUCTION RATES JOB FLOWS JOB SECURITY JOBS LABOR ADJUSTMENT LABOR DEMAND LABOR LAWS LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET INSTITUTIONS LABOR MARKET REFORMS LABOR MARKET RIGIDITIES LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REALLOCATION LABOR REGULATION LABOR REGULATIONS MANUFACTURERS MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MARKET ENTRY MULTI-PLANT FIRM MULTI-PLANT FIRMS NET JOB CREATION NEW MARKETS NEW TECHNOLOGIES PERMANENT WORKERS PRIVATE SECTOR PROBIT REGRESSIONS PRODUCT MARKET PRODUCT MARKET REGULATION PRODUCTION WORKERS PRODUCTIVITIES PRODUCTIVITY LEVELS PUBLIC SERVICES R&D REGULATORY REFORMS RESULT RESULTS RETAIL TRADE ROBUSTNESS ANALYSIS SEARCH SEARCHES SECURITY SERVICES SENSITIVITY ANALYSIS SERVICE SECTOR SERVICE SECTORS SEVERANCE PAYMENTS SMALL FIRMS SURVIVAL RATE SURVIVAL RATES TARGETS TELECOMMUNICATIONS TEMPORARY WORKERS TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TRADE REFORMS UNEMPLOYMENT USES WAGE BARGAINING WAGE RATE WAGE RATES WAGES WEB WORKER WORKERS WORLD TRADE |
| spellingShingle |
ADJUSTMENT PROCESS AGGREGATE GROWTH AGGREGATE PRODUCTIVITY AGGREGATE PRODUCTIVITY GROWTH BUSINESS ENVIRONMENT BUSINESS HOTELS BUSINESS SERVICE BUYERS COMPETITIVENESS COMPETITORS CORRELATION MATRIX CREATING JOBS CREATIVE DESTRUCTION CROSS-INDUSTRY ANALYSIS CROSS-SECTIONAL DATA CUSTOMS DATA ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATE EMPLOYMENT LEVEL EMPLOYMENT LEVELS EMPLOYMENT PROTECTION LEGISLATION EMPLOYMENT RELATIONSHIP ENTERPRISE SURVEYS EQUIPMENT EXISTING WORKFORCE EXPORT MARKET EXPORT MARKETS FINANCIAL INSTITUTIONS FINANCIAL SERVICES FIRING COSTS FIRM LEVEL FIRM PERFORMANCE FIRM SIZE FIRM TURNOVER FLEXIBLE LABOR MARKETS FOREIGN DIRECT INVESTMENT FOREIGN MARKETS FOREIGN OWNERSHIP GENERAL EQUILIBRIUM GLOBAL ECONOMY GOVERNMENT SERVICES INDUSTRY PRODUCTIVITY INNOVATION INNOVATIONS INSPECTIONS INTERNATIONAL MARKETS INTERNATIONAL TRADE JOB CREATION JOB CREATION RATE JOB CREATION RATES JOB DESTRUCTION JOB DESTRUCTION RATES JOB FLOWS JOB SECURITY JOBS LABOR ADJUSTMENT LABOR DEMAND LABOR LAWS LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET INSTITUTIONS LABOR MARKET REFORMS LABOR MARKET RIGIDITIES LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REALLOCATION LABOR REGULATION LABOR REGULATIONS MANUFACTURERS MANUFACTURING MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MARKET ENTRY MULTI-PLANT FIRM MULTI-PLANT FIRMS NET JOB CREATION NEW MARKETS NEW TECHNOLOGIES PERMANENT WORKERS PRIVATE SECTOR PROBIT REGRESSIONS PRODUCT MARKET PRODUCT MARKET REGULATION PRODUCTION WORKERS PRODUCTIVITIES PRODUCTIVITY LEVELS PUBLIC SERVICES R&D REGULATORY REFORMS RESULT RESULTS RETAIL TRADE ROBUSTNESS ANALYSIS SEARCH SEARCHES SECURITY SERVICES SENSITIVITY ANALYSIS SERVICE SECTOR SERVICE SECTORS SEVERANCE PAYMENTS SMALL FIRMS SURVIVAL RATE SURVIVAL RATES TARGETS TELECOMMUNICATIONS TEMPORARY WORKERS TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TRADE REFORMS UNEMPLOYMENT USES WAGE BARGAINING WAGE RATE WAGE RATES WAGES WEB WORKER WORKERS WORLD TRADE Şeker, Murat Rigidities in Employment Protection and Exporting |
| geographic_facet |
The World Region |
| relation |
Policy Research working paper ; no. WPS 5303 |
| description |
A large number of studies have shown
that contribution of exporters to economic growth and
development is much higher than non-exporting firms. This
evidence has lead governments to improve their trade
policies in order to increase foreign exposure of firms.
However, improvements in trade policies can only be fully
effective when they are complemented with other regulatory
reforms that improve the investment climate for firms. This
study focuses on a particular aspect of investment climate,
namely employment protection legislation, and shows how
these regulations discourage firms from exporting. Using a
rich set of firm level data from 26 countries in the Eastern
Europe and Central Asia region, the author shows that firms
that cannot create new jobs due to restrictive labor
regulations are less likely to export. Evidence shows that
firms that plan to export expand their size before they
start to export. However the rigidities in labor markets
make this adjustment costly. Higher costs of labor decrease
operating profits and lead to a higher threshold value of
productivity required for entering export markets. As a
result, a smaller fraction of firms chooses to export. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Şeker, Murat |
| author_facet |
Şeker, Murat |
| author_sort |
Şeker, Murat |
| title |
Rigidities in Employment Protection and Exporting |
| title_short |
Rigidities in Employment Protection and Exporting |
| title_full |
Rigidities in Employment Protection and Exporting |
| title_fullStr |
Rigidities in Employment Protection and Exporting |
| title_full_unstemmed |
Rigidities in Employment Protection and Exporting |
| title_sort |
rigidities in employment protection and exporting |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100510115506 http://hdl.handle.net/10986/3788 |
| _version_ |
1764388355899916288 |