How Employee Protections Affect Investment and Growth

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Executive Summary

How much protection should employees have in the workplace? Evidence shows that while regulations often protect people from harm, they can also have unintended negative consequences. New research tries to understand the costs and benefits by studying the effects of regulations around at-will employment, the legal doctrine that allows employers to terminate any employee without warning, and for any reason, without the risk of legal liability. Researchers found that employment protections to limit at-will employment had a negative effect on business investment…

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