The effects of employment protection legislation and financial market imperfections on investment: evidence from a firm-level panel of EU countries

Cingano, Federico; Leonardi, Marco; Messina, J. P.; Pica, Giovanni

doi:10.1111/j.1468-0327.2009.00235.x

Cited by 150 publications

(100 citation statements)

References 66 publications

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“…The negative impact of employment protection on turnover was confirmed also by cross-country studies performed on aggregate data (see Gomez-Salvador et al, 2004;Messina and Vallanti, 2007;Boeri and Garibaldi, 2009). To similar conclusions arrive also studies exploiting difference-in-differences approach on OECD countries (see Micco and Pages, 2006;Haltiwanger et al, 2010;Bassanini et al, 2010;Cingano et al, 2010;and OECD, 2010), by which the negative relationship between dismissal costs and job flows is greater in industries with greater propensity to reallocate labor.…”

Section: Brief Review Of the Efficiency Effects Of Severance Paysupporting

confidence: 53%

Severance Pay Programs around the World: History, Rationale, Status, and Reforms

Holzmann

Pouget²,

Vodopivec

et al. 2011

Reforming Severance Pay

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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. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. The paper examines severance pay programs around the world by providing the first ever overview of existing programs, examining their historic development, assessing their economic rationale and describing current reform attempts. While a significant part of the paper is devoted to a comprehensive 183 cross country review of existing severance arrangements and their characteristics, the paper goes beyond a mere description. It develops and empirically tests three hypotheses about the economic rationale of the program, namely severance pay being: (i) a primitive income protection program, (ii) an efficiency enhancing human resource instrument, and (iii) a job protection instrument. The paper also reviews the recent reforms

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Section: Brief Review Of the Efficiency Effects Of Severance Paysupporting

confidence: 53%

Severance Pay Programs around the World: History, Rationale, Status, and Reforms

Holzmann

Pouget²,

Vodopivec

et al. 2011

Reforming Severance Pay

View full text Add to dashboard Cite

show abstract

“…Stricter employment regulations, namely, may decrease fi rms' business expectations, which may reduce their willingness to employ (Stubelj, 2010). Recent analyses of gross worker and job fl ows performed with the use of differencein-differences estimators on a cross-section of industry-level data showed that strict dismissal regulations reduce job turnover or gross worker fl ows, by which the negative relationship is stronger in industries where the need for labour reallocation is higher (see Micco and Pages, 2006;Bassanini et al, 2010;Haltiwanger et al, 2010;Cingano et al, 2010). Reduced job and worker fl ows result in worse job opportunities for workers, whereas their association with employment levels is ambiguous (for overview of studies see OECD, 2010).…”

Section: Employment Protection Legislationmentioning

confidence: 99%

Do Flexicurity Policies Affect Labour Market Outcomes? An Analysis of EU Countries

Laporšek¹,

Dolenc²

2012

rsp

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“…3 In order to investigate this issue, we build and exploit a unique dataset including cross-country comparable hiring and separation rates 1 Search and matching models, such as those of Garibaldi (1998) or Mortensen and Pissarides (1999), also come to the conclusion that job mobility is negatively affected by the stringency of dismissal regulations. 2 See among others Autor et al (2007), Boeri and Jimeno (2005), Marinescu (2009), Gomez-Salvador et al (2004), Messina and Vallanti (2007), Haltiwanger et al (2008), Cingano et al (2010), and, for less conclusive findings, Bauer et al (2007), Martins (2009) andvon Below andThoursie (2010). 3 Obviously, workers might experience short spells of unemployment between the two dates.…”

Section: Introductionmentioning

confidence: 99%

Dismissal protection and worker flows in OECD countries: Evidence from cross-country/cross-industry data

Bassanini

Garnero²

2013

Labour Economics

100

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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. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. 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 persistent joblessness. 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.JEL Classification: J23, J24, J62, J63

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The effects of employment protection legislation and financial market imperfections on investment: evidence from a firm-level panel of EU countries

Cited by 150 publications

References 66 publications

Severance Pay Programs around the World: History, Rationale, Status, and Reforms

Severance Pay Programs around the World: History, Rationale, Status, and Reforms

Do Flexicurity Policies Affect Labour Market Outcomes? An Analysis of EU Countries

Dismissal protection and worker flows in OECD countries: Evidence from cross-country/cross-industry data

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