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Title:Does Employment Protection Reduce the Demand for Unskilled Labor? PDF Logo
Authors:Daniel, Kirsten
Siebert, William Stanley
Issue Date:2004
Series/Report no.:IZA Discussion paper series 1290
Abstract:Perhaps it does. We propose a model in which workers with little education or in the tails of the age distribution – the inexperienced and the old – have more chance of job failure (mismatch). Recruits? average education should then increase and the standard deviation of starting age decrease when strict employment protection raises hiring and firing costs. We test the model using annual distributions of recruits? characteristics from a 1975-95 panel of plants in Belgium, the Netherlands, Italy, the UK and the US. The model?s predictions are supported using the Blanchard-Wolfers index of employment protection as well as our alternative index.
Subjects:employment protection
labor demand
unskilled workers
firm panel data
JEL:J83
J21
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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