TY  - JOUR
AU  - Kugler,Adriana
AU  - Pica,Giovanni
TI  - Effects of Employment Protection on Worker and Job Flows: Evidence from the 1990 Italian Reform
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11658
PY  - 2005
Y2  - October 2005
UR  - http://www.nber.org/papers/w11658
L1  - http://www.nber.org/papers/w11658.pdf
N1  - Author contact info:
Adriana D. Kugler
Georgetown University
Georgetown Public Policy Institute
37th and O Streets NW, Suite 311
Washington, DC 20057
Tel: 202/687-5716
Fax: 202/687-5544
E-Mail: ak659@georgetown.edu

giovanni pica
Department of Economics
University of Salerno
Via Ponte Don Melillo
Fisciano (SA)
I-84084
Italy
E-Mail: gio.pica@gmail.com
M2  - featured in NBER digest on 2005-10-03
AB  - 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.
ER  -