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Threshold Values in German Labor Law and Job Dynamics in Small Firms: The Case of the Disability Law

Joachim Wagner (), Claus Schnabel () and Arnd Kölling ()
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Arnd Kölling: Berlin School of Economics and Law

No 386, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: According to the German disability law, or Schwerbehindertengesetz, either six percent of all jobs in an establishment must be occupied by disabled empoyees or the firm has to pay a penalty of DM 200 per month for every job under consideration. This note reports results from the first econometric investigation of the impact of this rule on job dynamics in small firms. Based on data from the IAB Establishment Panel we find no clear-cut evidence that employment in establishments at the first threshold of the law reacts differently on demand shocks than establishments below or above the threshold.

Keywords: disability law; Threshold values; labor demand (search for similar items in EconPapers)
JEL-codes: J23 J38 (search for similar items in EconPapers)
Date: 2001-10
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Published in: Ifo Studien, 2001, 47 (1), 65-75; see IZA Reprints 108/01

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