In this paper we analyse the employment implications of firing restrictions. We find that when a recession is expected and the trend rate of productivity growth is small, a rise in firing costs affects mainly the hiring decision. Thus there is a negative effect on average employment. When, on...

Using population-level administrative data, we study labor market externalities stemming from age-specific employment protection legislation (EPL) targeted towards older workers. Our results show no economically meaningful overall effects of the EPL on employment or earnings of either men or...

Many European labor markets are characterized by heavy employment protection taxes and the widespread use of fixed-duration contracts. The simultaneous use of these two policy instruments seems somewhat contradictory since the former primarily aims at limiting job destruction whereas the latter...

Empirical investigation of the labor market consequences of employment protection has mushroomed since Lazear's (1990) pioneering study. Having sketched the theoretical background, we chart the course of the modern empirical literature. We focus mainly on dismissals protection, distinguishing...

Digitalisation is one of the megatrends affecting societies and labour markets, alongside demographic change and globalisation. The fourth industrial revolution will redesign production processes and alter the relationships between work and leisure, capital and labour, the rich and the poor, the...

This paper provides a critical review of the recent empirical evidence on the links between regulations affecting the hiring and firing of workers, labour reallocation and productivity growth. It also reviews how workers affected by labour mobility fare and discusses policy options to support...

Dismissal protection has experienced many statutory changes in Germany in the past decades. This paper estimates the effects of dismissal protection on the hazard of leaving the establishment using as identification that workers employed before the legal amendment maintained their previous...

This paper describes IZAΨMOD, the policy microsimulation model of the Institute for the Study of Labor (IZA). The model uses household microdata from the German Socio-Economic Panel Study and firm data from the German linked employer-employee dataset LIAB. IZAΨMOD consists of three components:...

This paper examines the relationship between intra-firm wage dispersion and establishments' employment in a theoretical analysis and empirical regressions using German "Linked Employer-Employee Data from the IAB" (LIAB) for the years of 1996 through 2008. Therefore, fractional probit models for...

This paper analyses the link between human capitaland information technology(IT ) in the service production process. The analysis is based on 1994 cross-sectional data for 1929 German. Firms drawn from the first wave of the Mannheim Service Innovation Panel (MIP-S). Factor demand functions are...