EconPapers    
Economics at your fingertips  
 

Employment protection and labor productivity

Carl Magnus Bjuggren ()

Journal of Public Economics, 2018, vol. 157, issue C, 138-157

Abstract: Current theoretical predictions of how employment protection affects firm productivity are ambiguous. In this paper, I study the effect of employment protection rules on labor productivity using Swedish register data. A reform of employment protection rules in 2001 enabled small firms with fewer than eleven employees to exempt two workers from the seniority rules. I treat this reform as a natural experiment. My results indicate that increased labor market flexibility increases labor productivity. This increase is explained by total factor productivity and capital intensity rather than the educational level of workers.

Keywords: Employment protection; Labor market regulations; Labor productivity; Last-in-first-out rules (search for similar items in EconPapers)
JEL-codes: J23 J24 J32 J38 M51 K31 D22 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0047272717302013
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Employment Protection and Labor Productivity (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:157:y:2018:i:c:p:138-157

Access Statistics for this article

Journal of Public Economics is currently edited by R. Boadway and J. Poterba

More articles in Journal of Public Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-03-31
Handle: RePEc:eee:pubeco:v:157:y:2018:i:c:p:138-157