Dismissal protection and worker flows in small establishments

Abstract

"Based on a large employer-employee matched data set, the paper investigates the effects of variable enforcement of German dismissal protection legislation on the employment dynamics in small establishments. Specifically,using a difference-in-differences approach,we study the effect of changes in the threshold scale exempting small establishments from dismissal protection provisions on worker flows.In contrast to the predictions of the theory,our re- sults indicate that there are no statistically significant effects of the dismissal protection legislation on worker turnover." (Author's abstract, IAB-Doku) ((en))

Cite article

Bauer, T., Bender, S. & Bonin, H. (2004): Dismissal protection and worker flows in small establishments. (RWI discussion papers 14), Essen, 35 p.