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Seniority Rules, Worker Mobility and Wages: Evidence from Multi-Country Linked Employer-Employee Data

Author

Listed:
  • Böckerman, Petri

    (Turku School of Economics, Labour Institute for Economic Research, Helsinki a)

  • Skedinger, Per

    (Research Institute of Industrial Economics (IFN))

  • Uusitalo, Roope

    (Jyväskylä University School of Business and Economics)

Abstract

We construct a multi-country employer-employee data to examine the consequences of employment protection. We identify the effects by comparing worker exit rates between units of the same firm that operate in two countries that have different seniority rules. The results show that last-in-first-out rules reduce dismissals of older, more senior workers, especially in shrinking multinational firms, and increase their bargaining power, resulting in a steeper seniority-wage profile.

Suggested Citation

  • Böckerman, Petri & Skedinger, Per & Uusitalo, Roope, 2016. "Seniority Rules, Worker Mobility and Wages: Evidence from Multi-Country Linked Employer-Employee Data," Working Paper Series 1105, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1105
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    References listed on IDEAS

    as
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    3. Bjuggren, Carl Magnus & Skedinger, Per, 2018. "Does Job Security Hamper Employment Prospects?," Working Paper Series 1255, Research Institute of Industrial Economics.

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    More about this item

    Keywords

    Multi-country linked employer-employee data; Employment protection legislation; Seniority rules;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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