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Trust and employment protection legislation

Jayakody, Shashitha
; 
Morelli, D.
; 
Nica, M.
; 
Oberoi, J.
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Publication Date
2024-01
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Keywords
Trust, Informal institutions, Labor laws, Investment
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© 2023 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)
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Yes
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openAccess
Accepted for publication
2023-11-12
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Management and Law Publications
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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.
URI
http://hdl.handle.net/10454/19707
Version
Published version
Citation
Jayakody S, Morelli D, Nica M et al (2024) Trust and employment protection legislation. Economics Letters. 234: 111441.
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Link to Version of Record
https://doi.org/10.1016/j.econlet.2023.111441
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Article
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