Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/130308 
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers No. 9632
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
We construct a multi-country employer-employee data to examine the consequences of employment protection. We identify the effects by comparing worker exit rates between units of the same firm that operate in two countries that have different seniority rules. The results show that last-in-first-out rules reduce dismissals of older, more senior workers, especially in shrinking multinational firms, and increase their bargaining power, resulting in a steeper seniority-wage profile.
Subjects: 
multi-country linked employer-employee data
seniority rules
employment protection legislation
JEL: 
K31
J63
J32
J08
L51
Document Type: 
Working Paper

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