RT Journal Article
T1 Is employment protection legislation a driver or an inhibitor of entrepreneurship? The interaction between stringency and enforcement
A1 Congregado Ramírez de Aguilera, Emilio
A1 Rodríguez Santiago, Ana María
A1 Román Díaz, María Concepción
AB PurposeThis study aims to revisit the relationship between the stringency of employment protection legislation and entrepreneurship at the macro-level using time series data from 28 OECD countries.Design/methodology/approachTo address model uncertainty, a Bayesian model averaging methodology is employed, overcoming issues related to predictor selection. Additionally, the study delves into the interaction between employment protection legislation and the rule of law, considering potential unintended consequences and overlapping effects. Heterogeneity within self-employment is explored, making a distinction between solo self-employment and employer entrepreneurship.FindingsThe findings reveal that the impact of employment protection legislation, both for regular and temporary employment, on aggregate solo self-employment rates is contingent upon the level of practical regulatory compliance. The legislation can either stimulate or hinder entrepreneurship, highlighting the nuanced nature of its influence on macro-level entrepreneurial activities.Practical implicationsThe results of this study provide valuable insights for policymakers and regulators by emphasizing the complexity of the relationships under consideration. Understanding the potential interactions between employment protection legislation, rule of law and practical regulatory compliance is crucial for designing an effective and conducive regulatory environment for entrepreneurship.Originality/valueThis research offers a unique contribution to the literature in three distinct ways: by addressing model uncertainty through Bayesian model averaging, examining the interaction between employment protection legislation and the rule of law and differentiating between solo self-employment and employer entrepreneurship. These distinctive elements enhance the originality and value of the study, providing a more nuanced understanding of the intricate relationship between legal frameworks and macro-level entrepreneurship.
PB Emerald
SN 0143-7720
SN 1758-6577 (electrónico)
YR 2024
FD 2024-01-16
LK https://hdl.handle.net/10272/25141
UL https://hdl.handle.net/10272/25141
LA eng
NO Congregado, E., Rodriguez-Santiago, A. and Román, C. (2024), "Is employment protection legislation a driver or an inhibitor of entrepreneurship? The interaction between stringency and enforcement", International Journal of Manpower, Vol. 45 No. 10, pp. 115-143. https://doi.org/10.1108/IJM-11-2023-0705
NO Funding for open access publishing was provided by Universidad de Huelva/CBUA. The authors acknowledge funding from the Spanish Ministry of Science, Innovation and Universities through project PID2020-115183RB-C22; from Junta de Andalucía through grant P20-00733 and Research Group SEJ-487 (Spanish Entrepreneurship Research Group– SERG) and from Research and Transfer Policy Strategy of the University of Huelva 2021.
DS Repositorio Institucional de la Universidad de Huelva
RD 30 may 2026