In our paper, we analyze the impact of German employment protection legislation on the firms' employment adjustment patterns. We explore a reform of the Protection Against Dismissal Act (PADA) in 2004 that decreased the employment protection in small establishments and thus generated a...

In our paper, we analyze the impact of German employment protection legislation on the firms’ employment adjustment patterns. We explore a reform of the Protection Against Dismissal Act (PADA) in 2004 that decreased the employment protection in small establishments and thus generated a...