Bena, Jan
[VerfasserIn]
;
Ortiz-Molina, Hernan
[Sonstige Person, Familie und Körperschaft];
Simintzi, Elena
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 3, 2020 erstellt
Beschreibung:
Following state-level legal changes that increase labor dismissal costs, firms increase their innovation in new processes that facilitate the adoption of cost-saving production methods, especially in industries with a large share of labor costs in total costs. Firms with high innovation ability exhibit larger increases in process innovation and capital intensity, and larger decreases in employment and employment growth. This allows them to increase labor productivity, operating performance, and to mitigate value losses. Our evidence highlights that, by facilitating the adjustment of the input mix when conditions in input markets change, innovation ability is a key driver of firm performance