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Threshold Effects of Dismissal Protection Legislation in Germany

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dc.creator Verick, Sher
dc.date 2004
dc.date.accessioned 2013-10-16T07:09:24Z
dc.date.available 2013-10-16T07:09:24Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20226
dc.identifier ppn:378151908
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20226
dc.description In this paper we use a reform in the applicability of the Protection Against Dismissal Act or Kündigungsschutzgesetz in Germany to identify employment effects of the legislation for small establishments. Using a panel of establishments for the period 1997-2001, we find some evidence that a tightening of the threshold resulted in a higher probability of persistence and a lower probability of growth for the units in the treatment group during the post-reform years. When using the establishment size as according to the legislation, the effects were the strongest for establishments which were further away from the threshold. This result could reflect the presence of other institutional barriers or adjustment costs than those imposed by the Act. Alternatively, small establishments are unlikely to have perfect information regarding the applicability of the legislation. This is somewhat supported by the results when taking all employees as the measure for the establishment size. However, there is also some evidence that these results are being driven by other factors than the reform of the legislation.
dc.language eng
dc.publisher
dc.relation IZA Discussion paper series 991
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject J23
dc.subject J21
dc.subject J58
dc.subject ddc:330
dc.subject dismissal protection legislation
dc.subject difference-in-differences
dc.subject labour demand
dc.subject Kündigungsschutz
dc.subject Betriebsgrösse
dc.subject Klein- und Mittelunternehmen
dc.subject Arbeitsnachfrage
dc.subject Beschäftigungseffekt
dc.subject Wirtschaftspolitische Wirkungsanalyse
dc.subject Schätzung
dc.subject Deutschland
dc.title Threshold Effects of Dismissal Protection Legislation in Germany
dc.type doc-type:workingPaper


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