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Wie wirkt der Kündigungsschutz? (What are the effects of employment protection?)

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Author Info

  • Jahn, Elke J.

    () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

Abstract

"German employment protection legislation has recently come under criticism. Some complain that the employment protection legislation no longer protects the employment relationship against the arbitrary termination by the employer. Others emphasize that dismissal protection restricts firms' capacity to act and is at least one reason for Germany's persistent mass unemployment. The parties agree, however, that the extensive and complex case-law creates considerable legal uncertainty for both parties. The present study examines the costs generated by employment protection legislation and identifies the factors influencing the incidence and magnitude of severance pay. Empirical research on the labour market consequences of employment protection does not reach clear-cut results. If dismissal protection has any effect on economic outcomes at all, then these effects may be more negative. An economically efficient dismissal protection must create incentives for both parties of the employment contract to choose an efficient adjustment path that minimises the expected damage caused by the dismissal. Which reform proposal fulfils this demand is finally discussed." (Author's abstract, IAB-Doku) ((en))

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Bibliographic Info

Article provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its journal Zeitschrift für ArbeitsmarktForschung – Journal for Labour Market Research.

Volume (Year): 38 (2005)
Issue (Month): 2/3 ()
Pages: 284-304

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Handle: RePEc:iab:iabzaf:v:38:i:2/3:p:284-304

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Related research

Keywords: Kündigungsschutz; Kündigungsrecht - Reform; Kosten; Abfindung;

References

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  1. Stefano Scarpetta & Philip Hemmings & Thierry Tressel & Jaejoon Woo, 2002. "The Role of Policy and Institutions for Productivity and Firm Dynamics: Evidence from Micro and Industry Data," OECD Economics Department Working Papers 329, OECD Publishing.
  2. Thomas Bauer & Stefan Bender & Holger Bonin, 2004. "Dismissal Protection and Worker Flows in Small Establishments," RWI Discussion Papers 0014, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
  3. Ricardo J. Caballero & Kevin N. Cowan & Eduardo M.R.A. Engel & Alejandro Micco, 2004. "Effective Labor Regulation and Microeconomic Flexibility," Cowles Foundation Discussion Papers 1480, Cowles Foundation for Research in Economics, Yale University, revised Jun 2010.
  4. Verick, Sher, 2004. "Threshold Effects of Dismissal Protection Legislation in Germany," IZA Discussion Papers 991, Institute for the Study of Labor (IZA).
  5. Jahn, Elke J. & Schnabel, Claus, 2003. "Bestandsschutz durch Abfindungen: Höhere Rechtssicherheit und Effizienz," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1998 - 2007), ZBW – German National Library of Economics / Leibniz Information Centre for Economics, vol. 83(4), pages 219-223.
  6. Bertola, Giuseppe, 1999. "Microeconomic perspectives on aggregate labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 45, pages 2985-3028 Elsevier.
  7. Ronald Schettkat, 1997. "Employment Protection and Labour Mobility in Europe: an empirical analysis using the EU's labour force survey," International Review of Applied Economics, Taylor and Francis Journals, vol. 11(1), pages 105-118.
  8. Nickell, S. & Layard, R., 1997. "Labour Market Institutions and Economic Performance," Papers 23, Centre for Economic Performance & Institute of Economics.
  9. Christopher Gust & Jaime Marquez, 2002. "International comparisons of productivity growth: the role of information technology and regulatory practices," International Finance Discussion Papers 727, Board of Governors of the Federal Reserve System (U.S.).
  10. Gomez-Salvador, Ramon & Messina, Julian & Vallanti, Giovanna, 2004. "Gross job flows and institutions in Europe," Labour Economics, Elsevier, vol. 11(4), pages 469-485, August.
  11. Olivier Blanchard & Justin Wolfers, 1999. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," NBER Working Papers 7282, National Bureau of Economic Research, Inc.
  12. Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, vol. 91(1), pages 187-207, March.
  13. Boockmann, Bernhard & Hagen, Tobias, 2001. "The use of flexible working contracts in West Germany: evidence from an establishment panel," ZEW Discussion Papers 01-33, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  14. Gebhard Flaig & Horst Rottmann, 2004. "Erhöht der Kündigungsschutz die Beschäftigungsschwelle?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 57(17), pages 13-17, 09.
  15. Addison, John T. & Teixeira, Paulino, 2001. "The Economics of Employment Protection," IZA Discussion Papers 381, Institute for the Study of Labor (IZA).
  16. James J. Heckman & Carmen Pages, 2000. "The Cost of Job Security Regulation: Evidence from Latin American Labor Markets," NBER Working Papers 7773, National Bureau of Economic Research, Inc.
  17. Lazear, Edward P, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, MIT Press, vol. 105(3), pages 699-726, August.
  18. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
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