Labor Laws and Innovation

Article, Preprint OPEN
Viral V. Acharya; Ramin P. Baghai; Krishnamurthy V. Subramanian;
(2010)
  • Journal: The Journal of Law and Economics,volume 56,issue 4,pages997-997
  • Related identifiers: doi: 10.1086/674106
  • Subject: Entrepreneurship; Growth; Labor laws; Law and finance; R&D; Technological change
    • jel: jel:F30 | jel:J08 | jel:J8 | jel:J5 | jel:G31 | jel:K31

Can stringent labor laws be efficient? Possibly, if they provide firms with a commitment device to not punish short-run failures and thereby incentivize the pursuit of value-maximizing innovative activities. In this paper, we provide empirical evidence that strong labor... View more
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