IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The Impact of German Job Protection Legislation on Job Creation in Small Establishments

  • Derik Burgert
Registered author(s):

    A frequently-raised proposal in aid of increasing the flexibility of the German labour market, is the liberalisation of the job protection law. This law applies to those establishments with more than a specified cut-off number of employees. The argument examined in this paper is that this element of legal regulation hinders small enterprises from job creation. Changes in the cut-off number in the late 1990’s provide the basis for estimating this effect. The evaluation approach is a Regression Discontinuity Design using these changes as natural experiments. Local treatment effects can be estimated non-parametrically by local linear regression. The data base used is the IAB establishment panel. This paper is the first one to exploit the policy changes named above, whilst controlling for self-selection into the treatment “job protection”, using minimal assumptions concerning model specification. The results are in line with earlier studies, finding no evidence of impeding job growth in small establishments.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Article provided by Duncker & Humblot, Berlin in its journal Applied Economics Quarterly.

    Volume (Year): 52 (2006)
    Issue (Month): 2 ()
    Pages: 123-139

    as
    in new window

    Handle: RePEc:aeq:aeqaeq:v52_y2006_i2_q2_p123-139
    Contact details of provider: Web page: http://www.duncker-humblot.de

    Order Information: Web: http://www.duncker-humblot.de/index.php/zeitschriften/wirtschafts-undsozialwissenschaften/appliedeconomicsquarterly.html Email:


    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:aeq:aeqaeq:v52_y2006_i2_q2_p123-139. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Deborah Anne Bowen)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.