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Discussion Paper Details

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Full Details

Title: Dismissal Protection and Worker Flows in Small Establishments

Author(s): Thomas Bauer, Stefan Bender and Holger Bonin

Publication Date: May 2004

Keyword(s): difference-in-differences, employment protection and linked-employer-employee dataset

Programme Area(s): Labour Economics

Abstract: Based on a large employer-employee matched dataset, 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.

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Bibliographic Reference

Bauer, T, Bender, S and Bonin, H. 2004. 'Dismissal Protection and Worker Flows in Small Establishments'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4379