NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Effects of Employment Protection on Worker and Job Flows: Evidence from the 1990 Italian Reform

Adriana Kugler, Giovanni Pica

NBER Working Paper No. 11658
Issued in October 2005
NBER Program(s):   LS   PE

This paper uses the Italian Social Security employer-employee panel to study the effects of the Italian reform of 1990 on worker and job flows. We exploit the fact that this reform increased unjust dismissal costs for firms below 15 employees, while leaving dismissal costs unchanged for bigger firms, to set up a natural experiment research design. We find that the increase in dismissal costs decreased accessions and separations for workers in small relative to big firms, especially in sectors with higher employment volatility. Moreover, we find that the reform reduced firms' employment adjustments on the internal margin as well as entry rates while increasing exit rates.

download in pdf format
   (757 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w11658

Published: Kugler, Adriana & Pica, Giovanni, 2008. "Effects of employment protection on worker and job flows: Evidence from the 1990 Italian reform," Labour Economics, Elsevier, vol. 15(1), pages 78-95, February. citation courtesy of

Users who downloaded this paper also downloaded* these:
Gordon w15351 Misperceptions About the Magnitude and Timing of Changes in American Income Inequality
Jacob w15655 The Effect of Employment Protection on Worker Effort: Evidence from Public Schooling
Autor, Kerr, and Kugler w12860 Do Employment Protections Reduce Productivity? Evidence from U.S. States
Fryer and Levitt w9938 The Causes and Consequences of Distinctively Black Names
Fryer w22399 An Empirical Analysis of Racial Differences in Police Use of Force
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us