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The Effects of Employment Protection: Learning from Variable Enforcement Author info | Abstract | Publisher info | Download info | Related research | Statistics Tito Boeri
Juan F. Jimeno
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Employment protection legislations (EPL) are not enforced uniformly across the board. There are a number of exemptions to the coverage of these provisions: firms below a given threshold scale and workers with temporary contracts are not subject to the most restrictive provisions. This within country variation in enforcement allows to make inferences on the impact of EPL which go beyond the usual cross-country approach. In this paper we develop a simple model which explains why these exemptions are in place to start with. Then we empirically assess the effects of EPL on dismissal probabilities, based on a double-difference approach. Our results are in line with the predictions of the theoretical model. Workers in firms exempted from EPL are more likely to be laid-o®. We do not observe this effect in the case of temporary workers.
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Paper provided by FEDEA in its series Working Papers with number
2003-12.
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Article Paper Tito Boeri & Juan F. Jimeno, 2003.
"The Effects of Employment Protection: Learning from Variable Enforcement ,"
Working Papers
252, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
[Downloadable!] Boeri, Tito & Jimeno, Juan Francisco, 2003.
"The Effects of Employment Protection: Learning from Variable Enforcement ,"
CEPR Discussion Papers
3926, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Tito Boeri, 2004.
"The Effects of Employment Protection: Learning from Variable Enforcement ,"
2004 Meeting Papers
445a, Society for Economic Dynamics.
This paper has been announced in the following NEP Reports :
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"Hiring and Firing Costs, Adverse Selection and Long-term Unemployment ,"
IZA Discussion Papers
134, Institute for the Study of Labor (IZA).
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2003-14, FEDEA.
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Other versions:
Kugler, Adriana & Jimeno, Juan F. & Hernanz, Virginia, 2002.
"Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labor Market Reforms ,"
IZA Discussion Papers
657, Institute for the Study of Labor (IZA).
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Juan J Dolado & Carlos Garcia--Serrano & Juan F. Jimeno, 2002.
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European Economic Review ,
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"Firm Size Distribution and EPL in Italy ,"
William Davidson Institute Working Papers Series
2003-613, William Davidson Institute at the University of Michigan Stephen M. Ross Business School.
[Downloadable!]
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