Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung - Session: Labor Market Policies and Job Loss A18-V2
Dismissal protection has experienced many statutory changes in Germany in the past decades. This paper estimates the effects of dismissal protection on the hazard of leaving the establishment using as identification that workers employed before the legal amendment maintained their previous dismissal protection. Utilizing linked employer-employee data (LIAB), the results hint to a higher hazard during the first six month of seniority and a smaller hazard thereafter if dismissal protection is granted. I do not find evidence for a positive effect of dismissal protection on matching quality.