Stricter employment protection and firms' incentives to sponsor training

Pierre-Jean Messe () and Bénédicte Rouland
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Pierre-Jean Messe: LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes

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Abstract: This paper uses a difference-indifferences approach, combined with propensity score matching, to identify the effect of older workers employment protection on French firms' incentives to sponsor training. Between 1987 and 2008, French firms laying off workers aged over 50 had to pay a tax to the unemployment insurance system, known as the Delalande tax. In 1999, the measure was subjected to a reform that increased the tax, but only for large firms. We find that this exogenous increase substantially raised firms' incentives to train workers aged 45-49 but had no impact on the training rates among workers aged over 50. From a simple model with endogenous firing and training decisions, we give a theoretical illustration of these results.

Keywords: evaluation; firms' training incentives; employment protection; older workers (search for similar items in EconPapers)
Date: 2014-12
Note: View the original document on HAL open archive server: https://hal.science/hal-04455488v1
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Citations: View citations in EconPapers (1)

Published in Labour Economics, 2014, 31, pp.14-26. ⟨10.1016/j.labeco.2014.07.004⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04455488

DOI: 10.1016/j.labeco.2014.07.004

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