 The Effects of Employment Protection: Learning from Variable EnforcementNo 2003-12, Working Papers from FEDEA Abstract: Employment protection legislations (EPL) are not enforced uniformly across the board. There are a number of exemptions to the coverage of these provisions: firms below a given threshold scale and workers with temporary contracts are not subject to the most restrictive provisions. This within country variation in enforcement allows to make inferences on the impact of EPL which go beyond the usual cross-country approach. In this paper we develop a simple model which explains why these exemptions are in place to start with. Then we empirically assess the effects of EPL on dismissal probabilities, based on a double-difference approach. Our results are in line with the predictions of the theoretical model. Workers in firms exempted from EPL are more likely to be laid-o®. We do not observe this effect in the case of temporary workers. New Economics Papers: this item is included in nep-lab and nep-ltv Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fda:fdaddt:2003-12 Access Statistics for this paper More papers in Working Papers from FEDEA |
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