Dismissal Protection and Worker Flows in Small Establishments

Arbeitspapier

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 results indicate that there are no statistically significant effects of the dismissal protection legislation on worker turnover.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 1105

Classification and Topics

• Classification: Wirtschaft ; Labor Force and Employment, Size, and Structure ; Labor-Management Relations, Trade Unions, and Collective Bargaining: Public Policy ; Labor Demand
• Subject: employment protection ; linked employer-employee data set ; difference-in-differences ; Germany ; Kündigungsschutz ; Klein- und Mittelunternehmen ; Arbeitsmobilität ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bauer, Thomas K. ; Bender, Stefan ; Bonin, Holger
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/20340
• Last update: 10.03.2025, 11:43 AM CET