Employment Protection And Product Market Competition
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. Copyright The editors of the "Scandinavian Journal of Economics" 2006 . (This abstract was borrowed from another version of this item.)