Dismissal Protection and Worker Flows in Small Establishments

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

No 1105, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Based on a large employer-employee matched data set, 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: difference-in-differences; Germany; employment protection; linked employer-employee data set (search for similar items in EconPapers)
JEL-codes: J21 J23 J58 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2004-04
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (40)

Published - published in: Economica, 2007, 74 (296), 804-821

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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)
Working Paper: Dismissal Protection and Worker Flows in Small Establishments (2004)
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