Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
965078 | Journal of the Japanese and International Economies | 2007 | 28 Pages |
Abstract
There are two types of legal remedies for unjust dismissal, damages or reinstatement. Although workers' motivation is negatively influenced by employment adjustments such as a wage cut or layoffs, fired workers can receive a remedy when they are protected by dismissal regulations. We consider which legal remedy policy is better, damages or reinstatement, from the viewpoint of workers' motivation at workplaces. Under a reinstatement policy, firms are more likely to make an employment adjustment, and reinstatement is dominated by damages from the viewpoint of social welfare when the productivity loss caused by employment adjustment is minor. On the other hand, when the productivity loss is serious, employment adjustment is more likely made under the damages policy, and reinstatement can be desirable. J. Japanese Int. Economies21 (1) (2007) 78-105.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Kyota Eguchi,