Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322949 
Year of Publication: 
2016
Series/Report no.: 
U.S.E. Discussion Papers Series No. 16-08
Publisher: 
Utrecht University, Utrecht School of Economics, Tjalling C. Koopmans Research Institute, Utrecht
Abstract: 
Labor market institutions enable and constrain particular behaviors on the labor market and beyond. We take a closer look on employment protection legislation (EPL), and its unintended effects on entrepreneurial activity. We unpack the effects of EPL by disentangling the two mechanisms of the severance pay and notice period, and analyze the effects of these mechanisms on the allocation of entrepreneurial activity across employment and self-employment. This study uses multilevel analyses to examine the separate effect of the two main elements of EPL on an individual's occupational status. In general, the severance pay is found to be negatively related to entrepreneurial employees, whereas the notice period shows a positive relationship. The opposite is true for the effects on self-employed individuals.
Subjects: 
labor market institutions
employment protection legislation
severance pay
notice period
entrepreneurial employee activity
self-employment
Document Type: 
Working Paper

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