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Title:Threshold Values in German Labor Law and Job Dynamics in Small Firms: The Case of the Disability Law PDF Logo
Authors:Wagner, Joachim
Schnabel, Claus
Kölling, Arnd
Issue Date:2001
Series/Report no.:IZA Discussion paper series 386
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.
Subjects:Threshold values
disability law
labor demand
JEL:J23
J38
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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