[Econmaster2012] Research Seminar in Economics-Announcement

[Johannes Pfeifer]

Dear All,

 

we are happy to announce the following Research Seminar in Economics to take
place on Tuesday, January 15th  at  18:00 - 19:30 in room E03, ground floor,
Mohlstraße 36.

 

Presenter:  Alexander Hijzen – OECD, Paris

 

Title:  “The Effects of Employment Protection on Workforce Composition and
Worker Reallocation: Results from a Regression Discontinuity Design"" 

 

Abstract:

 

This paper analyses the impact of employment protection (EP) on the
composition of workforce and worker turnover using a unique firm-level data
set for Italy. The impact of employment protection is analyzed by means of a
regression discontinuity design (RDD) that exploits the variation in EP
provisions of firms below and above a size threshold. 

Considerable effort is made to show that the use of a RDD is appropriate in
the present context by showing that the firm-size density is continuous
around the threshold, firms just below the threshold do not display an
unusually low propensity to grow, and that the available control variables
are balanced around the threshold. Using our RDD approach, we show, first,
that EP increases worker reallocation, suggesting that EP may tend to reduce
rather to increase worker security. We further show that this can be
entirely explained by the impact of EP on the use of workers on temporary
contracts. Our preferred estimates suggest that the discontinuity in EP
increases the incidence of temporary work by 2.5 percentage points.
Moreover, EP is also found to reduce labour productivity and this is only to
a limited extent related to its impact on the incidence of temporary work.

 

 

Regards,

 

Prof. Dr. Johannes Pfeifer

 

--

Johannes Pfeifer

Department of Economics

University of Tuebingen

Mohlstrasse 36

72074 Tuebingen

Germany

Phone: +49 7071 2974137

 

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