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Seniority rules, worker mobility and wages: Evidence from multi-country linked employer-employee data

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  • Böckerman, Petri
  • Skedinger, Per
  • Uusitalo, Roope

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, 2015. "Seniority rules, worker mobility and wages: Evidence from multi-country linked employer-employee data," MPRA Paper 68581, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:68581
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    References listed on IDEAS

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    Cited by:

    1. Bjuggren, Carl Magnus & Skedinger, Per, 2018. "Does Job Security Hamper Employment Prospects?," Working Paper Series 1255, Research Institute of Industrial Economics.
    2. Ansala, Laura & Åslund, Olof & Sarvim¨aki, Matti, 2018. "Immigration history, entry jobs, and the labor market integration of immigrants," Working Paper Series 2018:20, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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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
    • 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
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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