Dismissal Protection and Long-term Sickness Absence - First Evidence from Germany

Nicole Gürtzgen and Karolin Hiesinger
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Nicole Gürtzgen: Institute for Employment Research (IAB), Nuremberg, Germany ; Univ. Regensburg ; ZEW
Karolin Hiesinger: Institute for Employment Research (IAB), Nuremberg, Germany

No 202022, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "This paper analyses the causal effects of weaker dismissal protection on the incidence of long-term sickness (> six weeks). We exploit a German policy change, which shifted the threshold exempting small establishments from dismissal protection from five to ten workers. Using administrative data, we find a significantly negative reform effect on transitions into long-term sickness in the second year after a worker has entered an establishment. This response is due to a behavioural, rather than a compositional effect and is mainly driven by less skilled workers. Our results further indicate that the reform did not alter the probability of involuntary unemployment after sickness." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Auswirkungen; Schwellenwert; Dauer; Fehlzeiten; IAB-Betriebs-Historik-Panel; IAB-Biografiedaten; Integrierte Erwerbsbiografien; Krankheit; Kündigungsschutz; Reformpolitik; Risiko; Arbeitslosigkeit; Arbeitsverhalten; 1999-2010 (search for similar items in EconPapers)
JEL-codes: D02 I12 J28 J38 J63 J88 K31 (search for similar items in EconPapers)
Pages: 62 pages
Date: 2020-07-23
New Economics Papers: this item is included in nep-eur, nep-hea and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:202022

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