Trust and employment protection legislation

Jayakody, Shashitha; Morelli, David; Nica, Melania; Oberoi, Jaideep

Abstract

We examine the role of generalized social trust in substituting for employment protection legislation. Using foreign direct investment from the US to a sample of OECD countries, we find that trust diminishes the importance of formal employment regulations in investment attractiveness.

Citation

Jayakody, S., Morelli, D., Nica, M., & Oberoi, J. (2023). Trust and employment protection legislation. Economics Letters, 234, Article 111441. https://doi.org/10.1016/j.econlet.2023.111441

• Journal Article Type: Article
• Acceptance Date: Nov 12, 2023
• Publication Date: Nov 24, 2023
• Deposit Date: Dec 4, 2023
• Publicly Available Date: Dec 4, 2023
• Journal: Economics Letters
• Print ISSN: 0165-1765
• Electronic ISSN: 1873-7374
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 234
• Article Number: 111441
• DOI: https://doi.org/10.1016/j.econlet.2023.111441
• Keywords: Trust, Informal institutions, Labor laws, Investment
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0165176523004676