Dismissal protection and worker flows in OECD countries: Evidence from cross-country/cross-industry data
Andrea Bassanini
(1, 2, 3)
,
Andrea Garnero
(4, 5, 6)
1
ERMES -
Equipe de recherche sur les marches, l'emploi et la simulation
2 OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development
3 IZA - Institute for the Study of Labor
4 PSE - Paris-Jourdan Sciences Economiques
5 PSE - Paris School of Economics
6 Solvay Brussels School of Economics and Management
2 OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development
3 IZA - Institute for the Study of Labor
4 PSE - Paris-Jourdan Sciences Economiques
5 PSE - Paris School of Economics
6 Solvay Brussels School of Economics and Management
Andrea Garnero
- Fonction : Auteur
- PersonId : 768310
- IdRef : 184993369
Résumé
Exploiting a unique dataset including cross-country comparable hiring and separation rates by type of transition for 24 OECD countries, 23 business-sector industries and 13 years, we study the effect of dismissal regulations on different types of gross worker flows, defined as one-year transitions. We use both a difference-in-difference approach - in which the impact of regulations is identified by exploiting likely cross-industry differences in their impact - and standard time-series analysis - in which the effect of regulations is identified through regulatory changes over time. We find that the more restrictive the regulation, the smaller is the rate of within-industry job-to-job transitions, in particular towards permanent jobs. By contrast, we find no significant effect as regards separations involving an industry change or leading to non-employment. The extent of reinstatement in the case of unfair dismissal appears to be the most important regulatory determinant of gross worker flows. We also present a large battery of robustness checks that suggest that our findings are robust.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Dismissal protection and worker flows in OECD countries: Evidence from cross-country/cross-industry data
|
Résumé |
en
Exploiting a unique dataset including cross-country comparable hiring and separation rates by type of transition for 24 OECD countries, 23 business-sector industries and 13 years, we study the effect of dismissal regulations on different types of gross worker flows, defined as one-year transitions. We use both a difference-in-difference approach - in which the impact of regulations is identified by exploiting likely cross-industry differences in their impact - and standard time-series analysis - in which the effect of regulations is identified through regulatory changes over time. We find that the more restrictive the regulation, the smaller is the rate of within-industry job-to-job transitions, in particular towards permanent jobs. By contrast, we find no significant effect as regards separations involving an industry change or leading to non-employment. The extent of reinstatement in the case of unfair dismissal appears to be the most important regulatory determinant of gross worker flows. We also present a large battery of robustness checks that suggest that our findings are robust.
|
Auteur(s) |
Andrea Bassanini
1, 2, 3
, Andrea Garnero
4, 5, 6
1
ERMES -
Equipe de recherche sur les marches, l'emploi et la simulation
( 985 )
- 12, Place du Panthéon 75230 PARIS CEDEX 05
- France
2
OCDE -
Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development
( 310903 )
- Organisation for Economic Co-operation and Development (OECD)
2, rue André Pascal 75775 Paris Cedex 16
- France
3
IZA -
Institute for the Study of Labor
( 142142 )
- Allemagne
4
PSE -
Paris-Jourdan Sciences Economiques
( 139754 )
- 48 boulevard Jourdan 75014 Paris
- France
5
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
6
Solvay Brussels School of Economics and Management
( 219674 )
- France
|
Comité de lecture |
Oui
|
Vulgarisation |
Non
|
Langue du document |
Anglais
|
Nom de la revue |
|
Audience |
Internationale
|
Date de publication |
2013-04
|
Volume |
25
|
Page/Identifiant |
25-41
|
Mots-clés (JEL) |
|
Domaine(s) |
|
Financement |
|
Mots-clés |
en
Gross worker flows, Industry-specific human capital, Job-to-job transitions, EPL, Reinstatement, Cross-country data
|
DOI | 10.1016/j.labeco.2012.12.003 |
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