Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245664 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14613
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We measure the impact of employment protection reduction in an uncertain framework on firms' hires and performance, exploiting the Italian 2015 Jobs Act. Results indicate that firms (1) stabilize workforce mainly through contract transformations of low-tenure and low-human-capital incumbent workers performing high-physical and low-intellectual tasks; (2) apply a cost-saving strategy that increases profits and decreases value added per-head. Effects are stronger among non-exporting and non-innovative firms. Our evidence casts doubts on the effectiveness of employment protection reductions in enhancing productivity in the long run.
Subjects: 
employment protection
human capital
productivity
tenure
tasks
JEL: 
J08
J21
J24
Document Type: 
Working Paper

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