Arbeitspapier
Dismissal Protection and Long-term Sickness Absence - First Evidence from Germany
This paper analyses the causal effects of weaker dismissal protection on the incidence of long-term sickness (> six weeks). We exploit a German policy change, which shifted the threshold exempting small establishments from dismissal protection from five to ten workers. Using administrative data, we find a significantly negative reform effect on transitions into long-term sickness in the second year after a worker has entered an establishment. This response is due to a behavioural, rather than a compositional effect and is mainly driven by less skilled workers. Our results further indicate that the reform did not alter the probability of involuntary unemployment after sickness.
- Language
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Englisch
- Bibliographic citation
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Series: IAB-Discussion Paper ; No. 22/2020
- Classification
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Wirtschaft
Institutions: Design, Formation, Operations, and Impact
Health Behavior
Safety; Job Satisfaction; Related Public Policy
Wages, Compensation, and Labor Costs: Public Policy
Labor Standards: Public Policy
Labor Turnover; Vacancies; Layoffs
Labor Law
- Subject
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Administrative Data
Difference-in-Differences
Dismissal Protection
Involuntary Unemployment
Long-term Sickness
Small Establishments
- Event
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Geistige Schöpfung
- (who)
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Gürtzgen, Nicole
Hiesinger, Karolin
- Event
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Veröffentlichung
- (who)
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Institut für Arbeitsmarkt- und Berufsforschung (IAB)
- (where)
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Nürnberg
- (when)
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2020
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Gürtzgen, Nicole
- Hiesinger, Karolin
- Institut für Arbeitsmarkt- und Berufsforschung (IAB)
Time of origin
- 2020