Dismissal Protection and Worker Flows in Small Establishments

Thomas Bauer (), Holger Bonin () and Stefan Bender ()

No 4379, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Based on a large employer-employee matched dataset, 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.

Keywords: Employment protection; Linked-employer-employee dataset; Difference-in-differences (search for similar items in EconPapers)
JEL-codes: J21 J23 J58 (search for similar items in EconPapers)
Date: 2004-05
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Citations: View citations in EconPapers (39)

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Related works:
Journal Article: Dismissal Protection and Worker Flows in Small Establishments (2007)
Working Paper: Dismissal protection and worker flows in small establishments (2004)
Working Paper: Dismissal Protection and Worker Flows in Small Establishments (2004)
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