What is the effect of employment
protection legislation (EPL) on labor market outcomes?
Conventional wisdom suggests that differences in labor
market conditions can be explained by differences in EPL, so
that different performances of U.S. and European labor
markets depend on different degree of strictness of EPL. In
this book we introduce the alternative view that the
strictness of EPL depends on the labor market conditions,
and investigate the consequences of this "reverse" causality
...