Seniority Rules, Worker Mobility and Wages: Evidence from Multi-Country Linked Employer-Employee Data

Petri Böckerman (), Per Skedinger and Roope Uusitalo

No 9632, IZA Discussion Papers from IZA Network @ LISER

Abstract: We construct a multi-country employer-employee data to examine the consequences of employment protection. We identify the effects by comparing worker exit rates between units of the same firm that operate in two countries that have different seniority rules. The results show that last-in-first-out rules reduce dismissals of older, more senior workers, especially in shrinking multinational firms, and increase their bargaining power, resulting in a steeper seniority-wage profile.

Keywords: multi-country linked employer-employee data; seniority rules; employment protection legislation (search for similar items in EconPapers)
JEL-codes: J08 J32 J63 K31 L51 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2016-01
New Economics Papers: this item is included in nep-law
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Published - published in: Labour Economics, 2018, 51, 48-62

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Related works:
Journal Article: Seniority rules, worker mobility and wages: Evidence from multi-country linked employer-employee data (2018)
Working Paper: Seniority Rules, Worker Mobility and Wages: Evidence from Multi-Country Linked Employer-Employee Data (2016)
Working Paper: Seniority rules, worker mobility and wages: Evidence from multi-country linked employer-employee data (2015)
Working Paper: Seniority rules, worker mobility and wages: Evidence from multi-country linked employer-employee data (2015)
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