on the one hand to the extent that epl raises the costs of workforce adjustments andor distorts the optimal composition of employment between temporary and regular workers it is likely to have a negative impact on the efficient allocation of labour and ultimately on productivity growth in this context in a general equilibrium framework hopenhayn and rogerson show how the distortion induced by firing restrictions pushes firms to use resources less efficiently as a result employment levels adjust at a lower speed and productivity is reduced bertola presents a growth model where job security provisions decrease returns to investment and capital accumulation