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Dismissal Protection and Worker Flows in Small Establishments

  • Thomas Bauer

    ()

  • Stefan Bender
  • Holger Bonin

Based on a large employer-employee matched data set, the paper investigates the effects of variable enforcement of German dismissal protection legislation on the employment dynamics in small establishments. Specifically, using a difference-in-differences approach, we study the effect of changes in the threshold scale exempting small establishments from dismissal protection provisions on worker flows. In contrast to the predictions of the theory, our results indicate that there are no statistically significant effects of the dismissal protection legislation on worker turnover.

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File URL: http://repec.rwi-essen.de/files/DP_04_014.pdf
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Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung in its series RWI Discussion Papers with number 0014.

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Length: 28 pages
Date of creation: Apr 2004
Date of revision:
Handle: RePEc:rwi:dpaper:0014
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  1. Bender, Stefan & Haas, Anette & Klose, Christoph, 2000. "IAB Employment Subsample 1975-1995 Opportunities for Analysis Provided by the Anonymised Subsample," IZA Discussion Papers 117, Institute for the Study of Labor (IZA).
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