2022考研英语一真题全文及解析(16)

If not placing jobs at risk, to the extent employment protection laws constrain business owners from dismissing under-performing managers, those laws act as a constraint on firm productivity and therefore on workers’ wages. Indeed, in “An International Perspective on New Zealand’s Productivity Paradox” (2014), the Productivity Commission singled out the low quality of managerial capabilities as a cause of the country’ s poor productivity growth record.
Nor are highly paid managers themselves immune from the harm caused by the ERA’s unjustified dismissal procedures. Because employment protection laws make it costlier to fire an employee, employers are more cautious about hiring new staff. This makes it harder for the marginal manager to gain employment. And firms pay staff less because firms carry the burden of the employment arrangement going wrong.
Society also suffers from excessive employment protections. Stringent job dismissal regulations adversely affect productivity growth and hamper both prosperity and overall well-being.