The Perverse Effects of Job-security Provisions on Job Security in Italy: Results from a Regression Discontinuity Design
This paper analyses the impact of employment protection (EP) on the composition of the workforce and worker turnover using a unique firm-level dataset for Italy. The impact of employment protection is analysed by means of a regression discontinuity design (RDD) that exploits the variation in EP prov...
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Format: | Elektronisch E-Book |
Sprache: | English |
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Paris
OECD Publishing
2013
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Schriftenreihe: | OECD Social, Employment and Migration Working Papers
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Schlagworte: | |
Online-Zugang: | UBA01 UBG01 UEI01 UER01 UPA01 UBR01 UBW01 FFW01 FNU01 EUV01 FRO01 FHR01 FHN01 TUM01 FHI01 UBM01 Volltext |
Zusammenfassung: | This paper analyses the impact of employment protection (EP) on the composition of the workforce and worker turnover using a unique firm-level dataset for Italy. The impact of employment protection is analysed by means of a regression discontinuity design (RDD) that exploits the variation in EP provisions across firms below and above a size threshold. Using our RDD approach, we show that EP increases worker reallocation, suggesting that EP tends to reduce rather to increase worker security on average. We further show that this can be entirely explained by the fact that firms facing more stringent EP make a greater use of workers on temporary contracts. Our preferred estimates suggest that the discontinuity in EP increases the incidence of temporary work by 2-2.5 percentage points around the threshold. Moreover, further analysis suggests that the effect of employment protection persists among larger firms well beyond the threshold and may account for about 20% of the overall incidence of temporary work. There is also evidence that EP reduces labour productivity and this effect is to an important extent due to the impact of EP on worker reallocation and the incidence of temporary work |
Beschreibung: | 1 Online-Ressource (49 Seiten) 21 x 29.7cm |
DOI: | 10.1787/5k40hthb969w-en |
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doi_str_mv | 10.1787/5k40hthb969w-en |
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spelling | Hijzen, Alexander Verfasser aut The Perverse Effects of Job-security Provisions on Job Security in Italy Results from a Regression Discontinuity Design Alexander Hijzen, Leopoldo Mondauto and Stefano Scarpetta Paris OECD Publishing 2013 1 Online-Ressource (49 Seiten) 21 x 29.7cm txt rdacontent c rdamedia cr rdacarrier OECD Social, Employment and Migration Working Papers This paper analyses the impact of employment protection (EP) on the composition of the workforce and worker turnover using a unique firm-level dataset for Italy. The impact of employment protection is analysed by means of a regression discontinuity design (RDD) that exploits the variation in EP provisions across firms below and above a size threshold. Using our RDD approach, we show that EP increases worker reallocation, suggesting that EP tends to reduce rather to increase worker security on average. We further show that this can be entirely explained by the fact that firms facing more stringent EP make a greater use of workers on temporary contracts. Our preferred estimates suggest that the discontinuity in EP increases the incidence of temporary work by 2-2.5 percentage points around the threshold. Moreover, further analysis suggests that the effect of employment protection persists among larger firms well beyond the threshold and may account for about 20% of the overall incidence of temporary work. There is also evidence that EP reduces labour productivity and this effect is to an important extent due to the impact of EP on worker reallocation and the incidence of temporary work Employment Social Issues/Migration/Health Italy Mondauto, Leopoldo ctb Scarpetta, Stefano ctb https://doi.org/10.1787/5k40hthb969w-en Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Hijzen, Alexander The Perverse Effects of Job-security Provisions on Job Security in Italy Results from a Regression Discontinuity Design Employment Social Issues/Migration/Health Italy |
title | The Perverse Effects of Job-security Provisions on Job Security in Italy Results from a Regression Discontinuity Design |
title_auth | The Perverse Effects of Job-security Provisions on Job Security in Italy Results from a Regression Discontinuity Design |
title_exact_search | The Perverse Effects of Job-security Provisions on Job Security in Italy Results from a Regression Discontinuity Design |
title_exact_search_txtP | The Perverse Effects of Job-security Provisions on Job Security in Italy Results from a Regression Discontinuity Design |
title_full | The Perverse Effects of Job-security Provisions on Job Security in Italy Results from a Regression Discontinuity Design Alexander Hijzen, Leopoldo Mondauto and Stefano Scarpetta |
title_fullStr | The Perverse Effects of Job-security Provisions on Job Security in Italy Results from a Regression Discontinuity Design Alexander Hijzen, Leopoldo Mondauto and Stefano Scarpetta |
title_full_unstemmed | The Perverse Effects of Job-security Provisions on Job Security in Italy Results from a Regression Discontinuity Design Alexander Hijzen, Leopoldo Mondauto and Stefano Scarpetta |
title_short | The Perverse Effects of Job-security Provisions on Job Security in Italy |
title_sort | the perverse effects of job security provisions on job security in italy results from a regression discontinuity design |
title_sub | Results from a Regression Discontinuity Design |
topic | Employment Social Issues/Migration/Health Italy |
topic_facet | Employment Social Issues/Migration/Health Italy |
url | https://doi.org/10.1787/5k40hthb969w-en |
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