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Partial employment protection and perceived job security: evidence from France

Author

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  • Alexandre Georgieff
  • Anthony Lepinteur

Abstract

This paper assesses the causal effect of partial employment protection on workers’ subjective job security via the perceived probability of layoff. We consider the rise in the French Delalande tax, which is paid by private firms if they lay off older workers. This reform was restricted to large firms and therefore allows us to use a difference-in-differences strategy. In ECHP data, we find that the change in the perceived probability of layoffs induced by the higher Delalande tax improved the subjective job security of older (protected) workers, but at the cost of a negative externality on other workers. The changes in job security in both groups are of similar size, but as unprotected workers are the large majority of the sample, the population effect of the tax on layoffs was to reduce job security.

Suggested Citation

  • Alexandre Georgieff & Anthony Lepinteur, 2018. "Partial employment protection and perceived job security: evidence from France," Oxford Economic Papers, Oxford University Press, vol. 70(3), pages 846-867.
    • Handle: RePEc:oup:oxecpp:v:70:y:2018:i:3:p:846-867.
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    File URL: http://hdl.handle.net/10.1093/oep/gpy009
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    Cited by:

    1. Lepinteur, Anthony & Clark, Andrew E. & D'Ambrosio, Conchita, 2024. "Unsettled: job insecurity reduces home-ownership," LSE Research Online Documents on Economics 126786, London School of Economics and Political Science, LSE Library.
    2. Michele Cantarella & Ilja Kristian Kavonius, 2024. "Job polarisation and household borrowing," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(4), pages 959-980, December.
    3. Andrew E. Clark & Anthony Lepinteur, 2022. "A Natural Experiment on Job Insecurity and Fertility in France," The Review of Economics and Statistics, MIT Press, vol. 104(2), pages 386-398, May.
    4. Christine Luecke & Andreas Knabe, 2020. "How much does others’ protection matter? Employment protection, future labour market prospects and well-being," Oxford Economic Papers, Oxford University Press, vol. 72(3), pages 893-914.
    5. Adrian Chadi & Laszlo Goerke, 2023. "Seeking shelter in times of crisis? unemployment, perceived job insecurity and trade union membership," Economica, London School of Economics and Political Science, vol. 90(359), pages 1041-1088, July.
    6. Hetschko, Clemens & Knabe, Andreas & Schöb, Ronnie, 2021. "Happiness, Work, and Identity," GLO Discussion Paper Series 783, Global Labor Organization (GLO).
    7. Andrew E. Clark & Conchita D’Ambrosio & Anthony Lepinteur, 2023. "Marriage as insurance: job protection and job insecurity in France," Review of Economics of the Household, Springer, vol. 21(4), pages 1157-1190, December.
    8. Bertoni, Marco & Chinetti, Simone & Nistico, Roberto, 2023. "Employment Protection, Job Insecurity, and Job Mobility," IZA Discussion Papers 16647, Institute of Labor Economics (IZA).
    9. Anthony Lepinteur, 2021. "The asymmetric experience of gains and losses in job security on health," Health Economics, John Wiley & Sons, Ltd., vol. 30(9), pages 2217-2229, September.

    More about this item

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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