The Effects of Employment Protection: Learning from Variable Enforcement
Abstract
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 making inferences on the impact of EPL that go beyond the usual cross-country approach. In this Paper we develop a simple model that 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-off. We do not observe this effect in the case of temporary workers.(This abstract was borrowed from another version of this item.)
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Bibliographic Info
Paper provided by Society for Economic Dynamics in its series 2004 Meeting Papers with number 445a.Length:
Date of creation: 2004
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Handle: RePEc:red:sed004:445a
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Keywords:Other versions of this item:
- Boeri, Tito & Jimeno, Juan F., 2005. "The effects of employment protection: Learning from variable enforcement," European Economic Review, Elsevier, vol. 49(8), pages 2057-2077, November.
- 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.
- Tito Boeri & Juan F. Jimeno, . "The Effects of Employment Protection: Learning from Variable Enforcement," Working Papers 2003-12, FEDEA.
- 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.
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
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