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dc.contributor.authorGaribaldi, Pietroen_US
dc.contributor.authorPacelli, Liaen_US
dc.contributor.authorBorgarello, Andreaen_US
dc.date.accessioned2009-01-28T16:22:32Z-
dc.date.available2009-01-28T16:22:32Z-
dc.date.issued2003en_US
dc.identifier.urihttp://hdl.handle.net/10419/21452-
dc.description.abstractThe existing literature ignores the fact that in most European countries the strictness of Employment Protection Legislation (EPL) varies across the firm size distribution. In Italy firms are obliged to rehire an unfairly dismissed worker only if they employ more than 15 employees. Theoretically, the paper solves a baseline model of EPL with threshold effects, and shows that firms close to the threshold are characterized by an increase in inaction and by a reluctance to grow. Empirically, the paper estimates transition probability matrices on firm level employment using a longitudinal data set based on Italian Social Security (INPS) records, and finds two results. First, firms close to the 15 employees threshold experience an increase in persistence of 1.5 percent with respect to a baseline statistical model. Second, firms with 15 employees are more likely to move backward than upward. Finally, the paper tests the effect of a 1990 reform which tightened the regulation on individual dismissal only for small firms. It finds that the persistence of small firms relative to large firms increased significantly. Overall, these threshold effects are significant and robust, but quantitatively small.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesIZA Discussion paper series 787en_US
dc.subject.jelJ4en_US
dc.subject.ddc330en_US
dc.subject.keywordemployment protection legislationen_US
dc.subject.keywordfirm sizeen_US
dc.subject.stwArbeitsrechten_US
dc.subject.stwKündigungsschutzen_US
dc.subject.stwBetriebsgrößeen_US
dc.subject.stwUnternehmenswachstumen_US
dc.subject.stwSchätzungen_US
dc.subject.stwTheorieen_US
dc.subject.stwItalienen_US
dc.titleEmployment Protection Legislation and the Size of Firmsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn364387319en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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