 Job security and the age-composition of employment: evidence from ChileCarmen Pages and Claudio Montenegro Estudios de Economia, 2007, vol. 34, issue 2 Year 2007, 109-139 Abstract: This paper develops and tests a mechanism by which job security affects the age-composition of employment. This mechanism is based on the relative costs of dismissing young versus older workers resulting from job security provisions that are related to tenure. Using 39 consecutive annual household-surveys from Chile, we find that job security is associated with a substantial decline in the wage employment-to-population rate of young workers. In contrast, we do not find such a decline in young self-employment rates or in the wage employment rates of older workers. Comparing results for men and women and using measures of relative dismissal costs, we find that the adverse effect of job security on youth employment is driven by the link between severance payments and tenure. We also find that job security does not have a significant impact on overall aggregate employment, participation or unemployment rates. Keywords: Job security; employment composition; severance pay; Chile; job tenure. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:udc:esteco:v:34:y:2007:i:2:p:109-139 Access Statistics for this article Estudios de Economia is currently edited by Rómulo Chumacero More articles in Estudios de Economia from University of Chile, Department of Economics Contact information at EDIRC. |
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