Schwellenwerte im deutschen Kündigungsschutzrecht - Ein Beschäftigungshindernis für kleine Unternehmen?
One of the proposals most frequently raised to increase flexibility of the German labour market is the liberalization of the job protection law. It applies only to those firms employing a more than a cut-off number of employees. Thus, firms just above the cut-off face considerably higher adjustment costs in times of lower demand for labour than their competitors with a firm size lower than this number. An argument produced in the discussion is that this step in legal regulation hinders small firms from growing beyond this cut-off number. The basis for estimating the treatment effect of empoyment protection is a change in the cut-off number in the year 1996. By that time the cut-off number was raised to ten employees releaving small firms between five and ten full-time workers from coverage by the law. The evaluation approach is a Regression Discontinuity Design using the change in legislation as a natural experiment. The local treatment effect can then be estimated non-parametrically. The method used is a local linear regression. The data base used is the 1997 wave of the IAB establishment panel containing some 8 000 firm level observations. The paper is one of the few using micro data to evaluate effects of job protections measures. To my knowledge it is the first one to exploit the policy change named above and controlling for self-selection into the treatment job protection.
|Date of creation:||Oct 2005|
|Contact details of provider:|| Web page: http://ffb.uni-lueneburg.de/repec/leu/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Battistin, Erich & Enrico Rettore, 2003.
"Another look at the Regression Discontinuity Design,"
Royal Economic Society Annual Conference 2003
18, Royal Economic Society.
- Erich Battistin & Enrico Rettore, 2003. "Another look at the regression discontinuity design," CeMMAP working papers CWP01/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Bauer, Thomas K. & Bender, Stefan & Bonin, Holger, 2004. "Dismissal Protection and Worker Flows in Small Establishments," RWI Discussion Papers 14, RWI - Leibniz-Institut für Wirtschaftsforschung.
- Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-209, January.
- Bauer, Thomas K. & Bender, Stefan & Bonin, Holger, 2004.
"Dismissal Protection and Worker Flows in Small Establishments,"
IZA Discussion Papers
1105, Institute for the Study of Labor (IZA).
- Thomas K. Bauer & Stefan Bender & Holger Bonin, 2007. "Dismissal Protection and Worker Flows in Small Establishments," Economica, London School of Economics and Political Science, vol. 74(296), pages 804-821, November.
- Bauer, Thomas & Bender, Stefan & Bonin, Holger, 2004. "Dismissal Protection and Worker Flows in Small Establishments," CEPR Discussion Papers 4379, C.E.P.R. Discussion Papers.
- Bauer, Thomas K. & Bender, Stefan & Bonin, Holger, 2004. "Dismissal protection and worker flows in small establishments," IAB Discussion Paper 200401, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Andrea Borgarello & Pietro Garibaldi & Lia Pacelli, 2003.
"Employment Protection Legislation and the Size of Firms,"
LABORatorio R. Revelli Working Papers Series
23, LABORatorio R. Revelli, Centre for Employment Studies.
- Pietro Garibaldi & Lia Pacelli & Andrea Borgarello, 2004. "Employment Protection Legislation and the Size of Firms," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 63(1), pages 33-68, April.
- Garibaldi, Pietro & Pacelli, Lia & Borgarello, Andrea, 2003. "Employment Protection Legislation and the Size of Firms," IZA Discussion Papers 787, Institute for the Study of Labor (IZA).
- Pietro Garibaldi & Lia Pacelli & Andrea Borgarello, 2003. "Employment Protection Legislation and the Size of Firms," Working Papers 247, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Jinyong Hahn & Petra Todd & Wilbert Van der Klaauw, 1999. "Evaluating the Effect of an Antidiscrimination Law Using a Regression-Discontinuity Design," NBER Working Papers 7131, National Bureau of Economic Research, Inc.
- Edward P. Lazear, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, Oxford University Press, vol. 105(3), pages 699-726.
- Buddelmeyer, Hielke & Skoufias, Emmanuel, 2003.
"An Evaluation of the Performance of Regression Discontinuity Design on PROGRESA,"
IZA Discussion Papers
827, Institute for the Study of Labor (IZA).
- Buddelmeyer, Hielke & Skoufias, Emmanuel, 2004. "An evaluation of the performance of regression discontinuity design on PROGRESA," Policy Research Working Paper Series 3386, The World Bank.
- Boockmann, Bernhard & Hagen, Tobias, 2001. "The use of flexible working contracts in West Germany: evidence from an establishment panel," ZEW Discussion Papers 01-33, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Verick, Sher, 2004. "Threshold Effects of Dismissal Protection Legislation in Germany," IZA Discussion Papers 991, Institute for the Study of Labor (IZA).
- John T. Addison & Paulino Teixeira, 2003.
"The Economics of Employment Protection,"
Journal of Labor Research,
Transaction Publishers, vol. 24(1), pages 85-129, January.
- Carling, Kenneth & Larsson, Laura, 2002. "Does early intervention help the unemployed youth?," Working Paper Series 2002:10, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Wagner, Joachim & Schnabel, Claus & Kölling, Arnd, 2001. "Threshold Values in German Labor Law and Job Dynamics in Small Firms: The Case of the Disability Law," IZA Discussion Papers 386, Institute for the Study of Labor (IZA).
When requesting a correction, please mention this item's handle: RePEc:leu:wpaper:51. 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: (Joachim Merz)
If references are entirely missing, you can add them using this form.