The influence of employment protection and firm-level factors on labor investment decisions

Abstract

In this research, we study the impact of business decisions on employment. We also argue the need to analyze how internal and external factors to the company condition its labor investment decisions. For this analysis, we focus on legal form, company size, and social responsibility as internal factors that may affect this type of investment. As external factors, we consider employment protection legislation in its different dimensions, such as protection of temporary employment, protection of the regular employee, and protection of employment in general. The last one is a combination of different aspects of employee protection and incorporates restrictions on collective dismissal.