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. Economies 21 (1) (2007) 78–105.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of The Japanese and International Economies
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
