Employment Protection: Its Effects on Different Skill Groups and on the Incentive to become Skilled

Nikolai Stähler

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2006, vol. 226, issue 1, 41-54

Abstract: Employment protection affects labour market outcomes and hence the incentive to acquire skills. Using a matching model with two education levels in which workers decide ex-ante on their skill formation, it is shown that employment protection can raise the fraction of skilled workers. This will be the case if workers obtain a sufficiently large fraction of the rent created by skill formation. Furthermore, it will be shown that high-skilled workers face shorter unemployment duration and lower dismissal probabilities.

Keywords: Education; employment protection; unemployment; search and matching models (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:226:y:2006:i:1:p:41-54

DOI: 10.1515/jbnst-2006-0105

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