Arbeitspapier

Quit behavior and the role of job protection

Job protection reduces job turnover by changing firms' hiring and firing decisions. Yet the effect of job protection on workers' quit decisions and post-quit outcomes is still unknown. We present the first evidence using individual panel data from 12 European countries, which differ both in worker turnover rates and in the level of job protection. We find that workers are less likely to quit their job in countries with more job protection, but conditional on quitting they receive higher wages. This evidence can be explained by increased mobility costs associated with higher expected risk of post-quit layoff and job mismatch.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 6540

Classification
Wirtschaft
Safety; Job Satisfaction; Related Public Policy
Job, Occupational, and Intergenerational Mobility; Promotion
Subject
institutions
employment protection
labor mobility
job satisfaction
wages
Arbeitnehmerschutz
Arbeitsmobilität
Kündigung
Arbeitszufriedenheit
Lohn
Schätzung
Europa

Event
Geistige Schöpfung
(who)
Gielen, Anne C.
Tatsiramos, Konstantinos
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2012

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Gielen, Anne C.
  • Tatsiramos, Konstantinos
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2012

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