Human capital, employment protection and growth in Europe

We study cross-country employment protection (EPL) and industry growth differentials. * We consider the interaction of EPL and technology adoption in skill intensive sectors. * We use a difference-in-difference approach to compare sectors across EU countries. * Value added and TFP growth differentials are greater in countries where EPL is lower. Using data for a large sample of manufacturing and service sectors in 14 EU countries, this paper shows that the value added and TFP growth rate differential between high and low human capital intensive industries is greater in countries with low than... Mehr ...