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Employment Protection and Product Market CompetitionSebastian G. KessingWissenschaftszentrum Berlin fuer Sozialforschung (WZB) - Market Processes and Governance; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) Scandinavian Journal of Economics, Vol. 108, No. 2, pp. 339-352, July 2006 Abstract: A firm facing employment protection will defend its market position more fiercely than a rival firm operating without such restrictions. However, ex ante such firms may be more reluctant to expand. For the benchmark case of contest competition, the defensive effect dominates. A firm facing employment protection has a stronger average market position.
Number of Pages in PDF File: 14 Accepted Paper SeriesDate posted: August 16, 2006Suggested CitationContact Information
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