Threshold Values in German Labor Law and Job Dynamics in Small Firms: The Case of the Disability Law

18 Pages Posted: 28 Oct 2001

See all articles by Joachim Wagner

Joachim Wagner

University of Lueneburg - Institute of Economics; Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics; IZA Institute of Labor Economics

Claus Schnabel

University of Erlangen-Nuremberg; IZA Institute of Labor Economics

Arnd Kölling

Berlin School of Economics and Law

Date Written: November 2001

Abstract

According to the German disability law, or Schwerbehindertengesetz, either six percent of all jobs in an establishment must be occupied by disabled employees or the firm has to pay a penalty of DM 200 per month for every job under consideration. This note reports results from the first econometric investigation of the impact of this rule on job dynamics in small firms. Based on data from the IAB Establishment Panel we find no clear-cut evidence that employment in establishments at the first threshold of the law reacts differently on demand shocks than establishments below or above the threshold.

Keywords: Threshold Values, Disability Law, Labor Demand

JEL Classification: J23, J38

Suggested Citation

Wagner, Joachim and Schnabel, Claus and Kölling, Arnd, Threshold Values in German Labor Law and Job Dynamics in Small Firms: The Case of the Disability Law (November 2001). Available at SSRN: https://ssrn.com/abstract=288294 or http://dx.doi.org/10.2139/ssrn.288294

Joachim Wagner (Contact Author)

University of Lueneburg - Institute of Economics ( email )

PO Box 2440
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HOME PAGE: http://www.uni-lueneburg.de/wifo

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics ( email )

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IZA Institute of Labor Economics

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Claus Schnabel

University of Erlangen-Nuremberg ( email )

Institut für Wirtschaftsforschung
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Germany
+49 911 5302 330 (Phone)
+49 911 5302 721 (Fax)

HOME PAGE: http://https://www.arbeitsmarkt.rw.fau.de/english-version/staff/prof-dr-claus-schnabel/

IZA Institute of Labor Economics

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Bonn, D-53072
Germany

Arnd Kölling

Berlin School of Economics and Law ( email )

Alt-Friedrichsfelde 60
Berlin, D-10315
Germany

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