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Dismissal Protection and Worker Flows in Small Establishments
Bauer, Thomas K.; Bender, Stefan; Bonin, Holger - Institute for the Study of Labor (IZA) - 2004
Based on a large employer-employee matched data set, the paper investigates the effects of variable enforcement of German dismissal protection legislation on the employment dynamics in small establishments. Specifically, using a difference-in-differences approach, we study the effect of changes...
Persistent link: https://www.econbiz.de/10005822158
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A Theory of Wage Adjustment under Loss Aversion
Ahrens, Steffen; Pirschel, Inske; Snower, Dennis J. - Institute for the Study of Labor (IZA) - 2014
We present a new theory of wage adjustment, based on worker loss aversion. In line with prospect theory, the workers' perceived utility losses from wage decreases are weighted more heavily than the perceived utility gains from wage increases of equal magnitude. Wage changes are evaluated...
Persistent link: https://www.econbiz.de/10011105061
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Adjustment Dynamics and the Natural Rate: An Account of UK Unemployment
Henry, Brian; Karanassou, Marika; Snower, Dennis J. - Institute for the Study of Labor (IZA) - 1999
This paper challenges what is the standard account of UK unemployment, namely that the major swings in unemployment … over the past 25 years are due predominantly to movements in the underlying empirical "natural rate of unemployment" (NRU … unemployment are due, instead, to very prolonged after-effects of persistent (transitory but long-lasting) shocks. We argue that (a …
Persistent link: https://www.econbiz.de/10005763790