Labor Laws and Innovation

We are grateful to Amit Seru and Vikrant Vig for helpful comments and to Anusha Chari, Rich Mathews, Amalia R. Miller, and Radha Iyengar for their insightful discussions. Furthermore, we would like to thank seminar and conference participants at the American Law and Economics Annual Meeting (2009), Western Finance Association Annual Meeting (2009), NBER Summer Institutes on Innovation Policy and the Economy (2009) and Law and Economics (2009), Summer Research Conference in Finance (2009) at the Indian School of Business (ISB), Cambridge University (Centre for Business Research), Emory University, London Business School, NYU Microeconomics seminar, and NYU Stern for valuable comments and suggestions. We thank Hanh Le and Chandrasekhar Mangipudi for excellent research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.