- Additional Authors
- Description
- 50 p.; 21 x 29.7cm.
- Summary
- 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.
- Series Statement
- OECD Social, Employment and Migration Working Papers, 1815-199X ; no.151
- Uniform Title
- OECD Social, Employment and Migration Working Papers, no.151.
- Subject
- LCCN
- 10.1787/5k40hthb969w-en
- OCLC
- oecd-lib-002901
- Author
Hijzen, Alexander.
- Title
The Perverse Effects of Job-security Provisions on Job Security in Italy [electronic resource]: Results from a Regression Discontinuity Design / Alexander Hijzen, Leopoldo Mondauto and Stefano Scarpetta
- Imprint
Paris : OECD Publishing, 2013.
- Series
OECD Social, Employment and Migration Working Papers, 1815-199X ; no.151
OECD Social, Employment and Migration Working Papers, 1815-199X ; no.151.
- Connect to:
- Indexed Term
Social Issues/Migration/Health
Employment
Italy
- Added Author
Mondauto, Leopoldo.
Scarpetta, Stefano.
- Other Standard Identifier
10.1787/5k40hthb969w-en doi