Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/210896
Authors: 
Bjuggren, Carl Magnus
Skedinger, Per
Year of Publication: 
2018
Series/Report no.: 
IFN Working Paper No. 1255
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
We investigate the effect of employment protection legislation (EPL) on the propensity to hire workers from unemployment and active labor market programs (ALMPs), utilizing a reform that decreased dismissal costs for small firms only. Using administrative data from Sweden, we find that less stringent EPL increased the share of workers hired from unemployment and some ALMPs. Our results suggest that there was less screening of new hires after the reform, and that liberalization of EPL mitigates the stigma associated with unemployment and participation in ALMPs.
Subjects: 
Employment protection
Active labor market programs
Unemployment
JEL: 
J60
J64
K31
H80
Document Type: 
Working Paper

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