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Dismissal Protection and Worker Flows in Small Establishments


Thomas K. Bauer


Rhine-Westphalia Institute for Economic Research (RWI-Essen); University of Bochum - Faculty of Economics; Institute for the Study of Labor (IZA)

Holger Bonin


Institute for the Study of Labor (IZA); Centre for European Economic Research (ZEW)

Stefan Bender


Government of the Federal Republic of Germany - Institute for Employment Research (IAB)
May 2004

CEPR Discussion Paper No. 4379

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.

Number of Pages in PDF File: 39

Keywords: Employment protection, linked-employer-employee dataset, difference-in-differences

JEL Classification: J21, J23, J58

working papers series


Date posted: June 1, 2004  

Suggested Citation

Bauer, Thomas K., Bonin, Holger and Bender, Stefan, Dismissal Protection and Worker Flows in Small Establishments (May 2004). CEPR Discussion Paper No. 4379. Available at SSRN: http://ssrn.com/abstract=554081

Contact Information

Thomas K. Bauer (Contact Author)
Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )
Hohenzollernstr. 1-3
Essen, 45128
Germany
+49 201 8149 264 (Phone)
+49 201 8149 284 (Fax)
HOME PAGE: http://www.rwi-essen.de
University of Bochum - Faculty of Economics ( email )
Universitätsstraße 150
Gebäude GC, Ebene 3, Raum 58
D-44780 Bochum
Germany
+02 34 32 28341 (Phone)
+02 34 32 14273 (Fax)
HOME PAGE: http://www.ruhr-uni-bochum.de/empwifo/
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Bonn, D-53072
Germany
+49 228 38 94 529 (Phone)
+49 228 38 94 510 (Fax)
Holger Bonin
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Bonn, D-53072
Germany
+49 228 3894 303 (Phone)
+49 228 3894 510 (Fax)
Centre for European Economic Research (ZEW)
P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany
Stefan Bender
Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )
Regensburger Str. 104
Nuremberg, 90478
Germany
+49 911 179 3082 (Phone)
+49 911 179 3297 (Fax)
Feedback to SSRN (Beta)


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References:  28
Citations:  21

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