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Title:Dismissal Protection and Worker Flows in Small Establishments PDF Logo
Authors:Bauer, Thomas K.
Bender, Stefan
Bonin, Holger
Issue Date:2004
Series/Report no.:IZA Discussion paper series 1105
Abstract:Based on a large employer-employee matched data set, the paper investigates the effects of variable enforcement of German dismissal protection legislation on the employment dynamics in small establishments. Specifically, using a difference-in-differences approach, we study the effect of changes in the threshold scale exempting small establishments from dismissal protection provisions on worker flows. In contrast to the predictions of the theory, our results indicate that there are no statistically significant effects of the dismissal protection legislation on worker turnover.
Subjects:employment protection
linked employer-employee data set
difference-in-differences
Germany
JEL:J21
J58
J23
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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