Trust and employment protection legislation

Main author: Jayakody, Shashitha
Other authors: Morelli, David
Nica, Melania
Oberoi, Jaideep Singh
Format: Journal Article           
Online access: Click here to view record


Summary: 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.