European layoff costs—estimated at 31 months of wages in Germany and 38 in France—turn portfolio bets on moonshot projects into bad economics because most attempts fail and require fast, large‑scale redundancies. Firms instead favor incremental upgrades that avoid triggering costly, years‑long restructuring. By contrast, U.S. firms can kill projects and reallocate talent quickly, sustaining a higher rate of disruptive bets.
— It reframes innovation policy by showing labor‑law design can silently tax failure and suppress moonshots, shaping transatlantic tech competitiveness.
Isegoria
2026.03.05
80% relevant
The article makes the same causal claim: strict labor protections and high firing costs (it cites Germany and contrasts US labor freedom) push firms to avoid risky investments and lock workers into roles, producing stagnation despite low unemployment — directly mapping onto the existing idea that firing costs reduce risky, high‑payoff activity.
msmash
2025.10.06
100% relevant
Coste and Coatanlem’s tracking of 'opaque restructuring costs' and examples like Apple’s 2024 car project shutdown versus Bosch/VW layoffs stretching to 2030.
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