The Effects of Employmet Protection on Labor Turnover: Empirical Empirical Evidence from Taiwan
AbstractThis paper investigates the effects of employment protection legislation on the rates of hiring, separation, worker flows, job reallocation, and churning flows for the case of Taiwan. Our empirical identification takes advantage of a reform created by Taiwan’s enactment of Labor Standards Law, which has substantially increased the costs of firing, and the implementation of the law’s enforcement measures. Moreover, our identification also exploits the fact that the stringency of the law’s provisions and the intensity of the law’s enforcement vary with establishment size. Based on monthly data at the establishment level for the period 1983–1995, we find that Taiwan’s Labor Standards Law and its enforcement measures have dampened labor turnover for mediumsized and large establishments, while that of small establishments was not affected.
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Bibliographic InfoPaper provided by Institute of Economics, Academia Sinica, Taipei, Taiwan in its series IEAS Working Paper : academic research with number 09-A005.
Length: 41 pages
Date of creation: May 2009
Date of revision:
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Web page: http://www.econ.sinica.edu.tw/index.php?foreLang=en
More information through EDIRC
Employment protection; Hiring; Separation; Worker flows; Job reallocation; Churning flows; Labor Standards Law;
Find related papers by JEL classification:
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
- J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-19 (All new papers)
- NEP-LAB-2009-12-19 (Labour Economics)
- NEP-REG-2009-12-19 (Regulation)
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