- A-Z
- Jena Economic Resea...
- Volume 3
- Relaxed Dismissal P...
- Autor(in)
-
Friedrich-Schiller-Universität Jena. Wirtschaftswissenschaftliche Fakultät
- Erschienen
- 20. Februar 2009
- Nummer des Discussion-Papers
-
2009-015
- Schlagwort(e)
-
Employment Protection
Small Business
Worker Flows
- Zusammenfsg.
-
Small firms are seen as important drivers of dynamics and innovation. They need to be particularly flexible and be able to react quickly to new challenges. This paper uses the latest change in dismissal protection legislation in Germany as a natural experiment and tries to find causal effects on the hiring and firing behaviour of small firms. Using a difference-in-differences approach, I find only small but positive effects on the total number of hirings. However, there are substantial substitution effects from temporary contract hirings to permanent contract hirings. The results remain robust when using count data models and applying fixed effects specifications.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- article research fields JER
- economics
- JEL-Classification for JER
- J38 - Public Policy ; K31 - Labor Law ; M21 - Business Economics