Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/141499
Authors: 
Bottasso, Anna
Conti, Maurizio
Sulis, Giovanni
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9740
Abstract: 
In this paper we analyse the impact of employment protection legislation (EPL) on firms' entry and exit rates for a large sample of industries of thirteen countries selected from the most recent version of the OECD Structural and Business Statistics Database. Using a differences-in-differences identification strategy, we find that more stringent EPL is associated to lower entry and exit rates, particularly in industries characterized by higher job reallocation intensity. We also find that both collective and individual dismissal regulations reduce firms' entry and exit rates. Interestingly, our results suggest that the negative effects of EPL is stronger in the case of firms between one and nine employees while, in the case of larger ones, results are not clear-cut. An extensive sensitivity analysis confirm the robustness of our findings.
Subjects: 
entry and exit
turnover
employment protection legislation
reallocation
JEL: 
J65
L11
L26
Document Type: 
Working Paper

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