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Departamento de Economía
Documentos de Trabajo
Employment Protection Legislation And The It-Sector In OECD Countries
José E. Galdón-Sánchez
Abstract
This paper explores the relatio ship betwee employme t protec-tio
legislatio (EPL) a d the share of employme t i the IT-sector.
Evide ce from several OE D cou tries suggests that the importa ce
of the IT-sector is smaller i eco omies with high levels of EPL tha i
eco omies with low levels. This shows up i the amou t of resources
dedicated to research o IT as well as i the share of employme t i
the sector. A simple model is provided to explai these facts. EPL
affects both labor supply a d labor dema d i the same way resulti g
i lower employme t equilibrium levels.
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