Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/113997 
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers No. 9114
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper examines reforms in German employment protection for permanent workers (EPLP) on workers' well-being proxied by life satisfaction. Using variation in how the reforms affected firms of different sizes, I apply a difference-in-differences approach in conjunction with individual fixed effects. I find that life satisfaction of temporary workers decreases by around 0.5 (11-point scale) when EPLP decreases. I investigate effect heterogeneity and discuss mechanisms. Placebo tests are conducted. An increase in EPLP had no effect. Due to the design of the EPLP reforms, the majority of permanent workers did not face major changes in EPLP.
Subjects: 
life satisfaction
well-being
employment protection reforms
quasi-experiment
difference-in-difference
JEL: 
J32
J38
Document Type: 
Working Paper

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