An an American it's hard for me to imagine how companies could ever work with universal protections from firing at will. What if you're running a painting business, and there's a downturn in construction. Do you just have to pay people to do nothing, since they haven't done anything wrong and aren't allowed to be fired? Or what if a large company needs to make a strategic pivot and fire some employees to hire others with a different skillset.
It seems like economists do consider this to be one of the big reasons why the U.S. economy has grown so much faster than the EU. Hiring in Europe is much riskier, so companies would rather stay small.
It seems like economists do consider this to be one of the big reasons why the U.S. economy has grown so much faster than the EU. Hiring in Europe is much riskier, so companies would rather stay small.