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Threshold Values in German Labor Law and Job Dynamics in Small Firms: The Case of the Disability Law

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Author Info
Wagner, Joachim () (Institute of Economics, University of Lüneburg, HWWA, Hamburg and IZA, Bonn)
Schnabel, Claus (Institute of Economics, Friedrich-Alexander-University Erlangen-Nuremberg)
Kölling, Arnd (Institute for Employment Research of the Federal Labor Services, Nuremberg)

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Abstract

According to the German disability law, or Schwerbehindertengesetz, either six percent of all jobs in an establishment must be occupied by disabled empoyees or the firm has to pay a penalty of DM 200 per month for every job under consideration. This note reports results from the first econometric investigation of the impact of this rule on job dynamics in small firms. Based on data from the IAB Establishment Panel we find no clear-cut evidence that employment in establishments at the first threshold of the law reacts differently on demand shocks than establishments below or above the threshold.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 386.

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Length: 18 pages
Date of creation: Oct 2001
Date of revision:
Publication status: Published in: ifo Studien 1/2001, 65-76.
Handle: RePEc:iza:izadps:dp386

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Related research
Keywords: Threshold values; disability law; labor demand;

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Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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  1. Bauer, Thomas K. & Bender, Stefan & Bonin, Holger, 2004. "Dismissal protection and worker flows in small establishments," IAB Discussion Paper 200401, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
    Other versions:
  2. Burgert, Derik, 2006. "Einstellungschancen von Älteren – Wie wirkt der Schwellenwert im Kündigungsschutz?," MPRA Paper 5846, University Library of Munich, Germany. [Downloadable!]
  3. Pietro Garibaldi & Lia Pacelli & Andrea Borgarello, 2003. "Employment Protection Legislation and the Size of Firms," Working Papers 247, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University. [Downloadable!]
    Other versions:
  4. Lena Koller & Claus Schnabel & Joachim Wagner, 2005. "Arbeitsrechtliche Schwellenwerte und betriebliche Arbeitsplatzdynamik: Eine empirische Untersuchung am Beispiel des Schwerbehindertengesetzes," Working Paper Series in Economics 13, University of Lüneburg, Institute of Economics. [Downloadable!]
    Other versions:
  5. Burgert, Derik, 2005. "Schwellenwerte im deutschen Kündigungsschutzrecht Ein Beschäftigungshindernis für kleine Unternehmen?," MPRA Paper 5969, University Library of Munich, Germany. [Downloadable!]
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