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Does employment protection help immigrants? Evidence from European labor markets

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  • Sá, Filipa

Abstract

High levels of employment protection reduce hiring and firing and have a theoretically ambiguous effect on the employment level. Immigrants, being new to the labor market, may be less aware of employment protection regulations and less likely to claim their rights, which may create a gap between the costs for employers of hiring a native relative to hiring an immigrant. This paper tests that hypothesis drawing on evidence for the EU and on two natural experiments for Spain and Italy. The results suggest that strict employment protection legislation (EPL) gives immigrants a comparative advantage relative to natives. Stricter EPL is found to reduce employment and reduce hiring and firing rates for natives. By contrast, stricter EPL has a much smaller effect on immigrants.

Suggested Citation

  • Sá, Filipa, 2011. "Does employment protection help immigrants? Evidence from European labor markets," Labour Economics, Elsevier, vol. 18(5), pages 624-642, October.
  • Handle: RePEc:eee:labeco:v:18:y:2011:i:5:p:624-642
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    Cited by:

    1. Edo Anthony, 2015. "The Impact of Immigration on Native Wages and Employment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 1151-1196, July.
    2. Almosova, Anna, 2013. "Labor Market Institutions and The Effect of Immigration on National Employment," MPRA Paper 49785, University Library of Munich, Germany, revised 12 Sep 2013.
    3. Nanos, Panagiotis & Schluter, Christian, 2014. "The composition of wage differentials between migrants and natives," European Economic Review, Elsevier, vol. 65(C), pages 23-44.
    4. Govert E. Bijwaard & Christian Schluter & Jackline Wahba, 2012. "The Impact of Labour Market Dynamics on the Return–Migration of Immigrants," CReAM Discussion Paper Series 1227, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    5. Steinar Holden & Åsa Rosén, 2014. "Discrimination And Employment Protection," Journal of the European Economic Association, European Economic Association, vol. 12(6), pages 1676-1699, December.
    6. Sharron Xuanren Wang & Arthur Sakamoto, 2016. "Did the Great Recession Downsize Immigrants and Native-Born Americans Differently? Unemployment Differentials by Nativity, Race and Gender from 2007 to 2013 in the U.S," Social Sciences, MDPI, Open Access Journal, vol. 5(3), pages 1-14, September.
    7. Mariusz Zielinski, 2015. "Unemployment And Labor Market Policy In Visegrad Group Countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 10(3), pages 185-201, September.
    8. Vincent Corluy & Gerlinde Verbist, 2014. "Can education bridge the gap? Education and the employment position of immigrants in Belgium," ImPRovE Working Papers 14/02, Herman Deleeck Centre for Social Policy, University of Antwerp.

    More about this item

    Keywords

    Immigration Employment protection;

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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