Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323786 
Year of Publication: 
2024
Citation: 
[Journal:] Industrial Relations: A Journal of Economy and Society [ISSN:] 1468-232X [Volume:] 64 [Issue:] 3 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2024 [Pages:] 318-342
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
This paper studies whether a decline in employment protection reduces workers' long‐term sickness absences (of >6 weeks). We exploit exogenous variation from a German policy change that shifted the threshold exempting small establishments from dismissal protection from 5 to 10 workers. Using German register data, we find that the reform significantly reduced employees' transitions into long‐term sickness during their second year after being hired. This response is due to a behavioral rather than a compositional effect and is particularly pronounced among the medium‐skilled and younger males. Further results indicate that the reform did not alter the probability of involuntary unemployment after sickness.
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article
Document Version: 
Published Version

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