Welfare‐Improving Employment Protection

Bélot, Michèle; Boone, Jan; Ours, Jan C. van

doi:10.1111/j.1468-0335.2006.00576.x

Cited by 237 publications

(206 citation statements)

References 16 publications

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“…in the case of sales per worker and TFP. 8 Results on the …xed term reform tell a completely di¤erent story, all coe¢ cients being negative, sizeable (between 2.4 and 3.5 p.p.) and statistically signi…cant.…”

Section: Labour Productivitymentioning

confidence: 99%

Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms

Cappellari

Dell’Aringa

Leonardi

2012

The Economic Journal

122

110

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We investigate the effects of two reforms of temporary employment using panel data on Italian firms. We exploit variation in their implementation across regions and sectors for identification. We find that the reform of apprenticeship contracts increased job turnover and induced the substitution of external staff with firms' apprentices, with an overall productivityenhancing effect. The reform of fixed-term contracts instead did not produce the intended results: it induced a substitution of temporary employees in favour of permanent ones and reduced capital intensity, generating productivity losses. We estimate substitution elasticities across types of temporary contracts that are consistent with these interpretations. Terms of use: Documents in EconStor mayJEL-Code: J240, J410.

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Section: Labour Productivitymentioning

confidence: 99%

Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms

Cappellari

Dell’Aringa

Leonardi

2012

The Economic Journal

122

110

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“…Few papers have asked questions about the optimal degree of employment protection. Two exceptions are the papers by Belot et al (2007) and Blanchard and Tirole (2008). Belot et al develop a model where EPL encourages workers to invest in match-specific human capital and characterizes the optimal level of protection.…”

Section: Some Theorymentioning

confidence: 99%

What do labor market institutions do?

Holmlund

2014

Labour Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe past couple of decades have seen a huge increase in research on various labor market institutions. This paper offers a brief overview and discussion of research on the labor market impacts of minimum wages (MW), unemployment insurance (UI), and employment protection legislation (EPL). It is argued that research on UI is largely a success story, involving a fruitful interplay between search theory and empirical work. This research has established that UI matters for labor market behavior, in particular the duration of unemployment, although there remains substantial uncertainty about the magnitudes of the effects. The research on MW should have shaken economists' belief in the competitive labor market model as a result of frequent failures to find noticeable employment effects despite considerable effects on wages. EPL research has established that employment protection reduces labor and job turnover but the jury is still out regarding the impact on overall employment and productivity.

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“…Hopenhayn and Rogerson (1993) show that, by creating a wedge between the marginal product and marginal cost of labor, dismissal cost reduces employment and lowers labor 1 Belot et al (2002) argue for a positive effect of employment protection on worker motivation whereas Ichino and Riphahn (2005) provide evidence to the contrary. The evidence regarding innovation is similarly mixed.…”

Section: Introductionmentioning

confidence: 86%

Employment Protection and Misallocation of Resources Across Plants: International Evidence

Lashitew¹

2015

CESifo Economic Studies

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Employment protection affects aggregate productivity via several channels in potentially contradicting ways, which makes it difficult to establish the relationship between the two. This study focuses on the misallocation of production factors across plants, which has been shown in past studies to substantially reduce aggregate productivity. The study provides new evidence on the effect of employment protection on resource misallocation using a large dataset of manufacturing plants covering more than 90 countries. For measuring misallocation, I use the within-industry dispersion of the marginal product of labor and total factor productivity. The results show that higher cost of dismissing redundant workers is positively associated with misallocation. The effect of dismissal cost is especially larger in industries that have greater demand for adjusting labor. More specifically, the effect is larger in industries that intrinsically have higher layoff rate, and in industries that have large positive or negative sales growth rates.JEL Classification: O40, J08, L60, D24

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Welfare‐Improving Employment Protection

Cited by 237 publications

References 16 publications

Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms

Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms

What do labor market institutions do?

Employment Protection and Misallocation of Resources Across Plants: International Evidence

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