The Economic Effects of Employment Protection: Evidence from International Industry-Level Data

Pagés-Serra, Carmen; Micco, Alejandro

dc.creator	Pagés-Serra, Carmen
dc.creator	Micco, Alejandro
dc.date	2010-10-28T22:55:58Z
dc.date	2010-10-28T22:55:58Z
dc.date	2007-12-01
dc.date.accessioned	2014-09-08T21:42:26Z
dc.date.available	2014-09-08T21:42:26Z
dc.date.issued	2014-09-08
dc.identifier	http://www.iadb.org/en/publications/publication-detail,7101.html?id=4851
dc.identifier	J - Labor and Demographic Economics::J3 - Wages, Compensation, and Labor Costs::J32 - Nonwage Labor Costs and Benefits; Private Pensions
dc.identifier	J - Labor and Demographic Economics::J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement::J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment
dc.identifier	J - Labor and Demographic Economics::J6 - Mobility, Unemployment, and Vacancies::J63 - Turnover; Vacancies; Layoffs
dc.identifier.uri	https://saber.ucab.edu.ve/xmlui/handle/123456789/15472
dc.description	This paper examines the economic effects of employment protection legislation in a sample of developed and developing countries. Implementing a difference-in-differences test lessens the potentially severe endogeneity and omitted variable problems associated with cross-country regressions. This test is based on the hypothesis that employment protection regulations are more binding in sectors of activity exposed to higher volatility in demand or supply shocks. The analysis indicates that more stringent legislation slows down job turnover by a significant amount, and that this effect is more pronounced in sectors that are intrinsically more volatile. The paper also finds that employment and value added decline in the most affected sectors, and employment and output effects are driven by a decline in the net entry of firms. In contrast, average employment per plant is not significantly affected.
dc.format	40
dc.format	ACROBAT
dc.language	en
dc.subject	Emprego
dc.subject	Labor
dc.subject	Empleo
dc.subject	Gross Job Flows
dc.subject	Employment
dc.subject	Firm Entry and Exit
dc.subject	Employment Reallocation
dc.subject	J63; Employment Protection Legislation
dc.subject	J32
dc.subject	WP-592; J23
dc.title	The Economic Effects of Employment Protection: Evidence from International Industry-Level Data
dc.type	Working Papers