期刊
JOURNAL OF PUBLIC ECONOMICS
卷 157, 期 -, 页码 138-157出版社
ELSEVIER SCIENCE SA
DOI: 10.1016/j.jpubeco.2017.11.007
关键词
Employment protection; Labor market regulations; Labor productivity; Last-in-first-out rules
类别
资金
- Swedish Research Council for Health, Working Life and Welfare (Forte) [2014-2740]
- Jan Wallander and Tom Hedelius Research Foundation
- Sparbankernas Forskningsstiftelse
Current theoretical predictions of how employment protection affects firm productivity are ambiguous. In this paper, I study the effect of employment protection rules on labor productivity using Swedish register data. A reform of employment protection rules in 2001 enabled small firms with fewer than eleven employees to exempt two workers from the seniority rules. I treat this reform as a natural experiment. My results indicate that increased labor market flexibility increases labor productivity. This increase is explained by total factor productivity and capital intensity rather than the educational level of workers.
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