Stricter employment protection and firms’ incentives to sponsor training: The case of French older workers
AbstractFrom French data, this paper uses a difference-in-differences approach combined with propensity score matching to identify the effect of an exogenous change in employment protection among older workers on firm’s incentives to sponsor training. Laying off workers aged 50 and above, French firms have to pay a tax to the unemployment insurance system, known as the Delalande tax. In 1999, the measure was subjected to a reform that increased due taxes but that did not concern equally all firms. We find that this exogenous shock to employment protection for older workers substantially rises firms’ incentives to train the 45-49 age group of workers. This result confirms predictions of the simple labor market model we develop in a first stage.
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Bibliographic InfoPaper provided by CEPREMAP in its series CEPREMAP Working Papers (Docweb) with number 1206.
Length: 25 pages
Date of creation: Sep 2012
Date of revision:
older workers; employment protection; firms’ training incentives;
Find related papers by JEL classification:
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
This paper has been announced in the following NEP Reports:
- NEP-AGE-2012-09-22 (Economics of Ageing)
- NEP-ALL-2012-09-22 (All new papers)
- NEP-BEC-2012-09-22 (Business Economics)
- NEP-DEM-2012-09-22 (Demographic Economics)
- NEP-EUR-2012-09-22 (Microeconomic European Issues)
- NEP-HRM-2012-09-22 (Human Capital & Human Resource Management)
- NEP-LAB-2012-09-22 (Labour Economics)
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