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Seniority rules, worker mobility and wages: Evidence from multi-country linked employer-employee data

Author

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  • Petri Böckerman

    (Palkansaajien tutkimuslaitos)

  • Per Skedinger
  • Roope Uusitalo

Abstract

We construct a multi-country employer-employee data to examine the consequences of employment protection. We identify the effects by comparing worker exit rates between units of the same firm that operate in two countries that have different seniority rules. The results show that last-in-first-out rules reduce dismissals of older, more senior workers, especially in shrinking multinational firms,and increase their bargaining power, resulting in a steeper seniority-wage profile.

Suggested Citation

  • Petri Böckerman & Per Skedinger & Roope Uusitalo, 2015. "Seniority rules, worker mobility and wages: Evidence from multi-country linked employer-employee data," Working Papers 302, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    • Handle: RePEc:pst:wpaper:302
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    References listed on IDEAS

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    Cited by:

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    2. Ansala, Laura & Åslund, Olof & Sarvim¨aki, Matti, 2018. "Immigration history, entry jobs, and the labor market integration of immigrants," Working Paper Series 2018:20, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Daniel Homocianu, 2023. "Exploring the Predictors of Co-Nationals’ Preference over Immigrants in Accessing Jobs—Evidence from World Values Survey," Mathematics, MDPI, vol. 11(3), pages 1-29, February.

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    More about this item

    Keywords

    Multi-country linked employer-employee data; Employment protection legislation; Seniority rules;
    All these keywords.

    JEL classification:

    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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