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Employment Protection Legislation and Firm Growth: Evidence from a Natural Experiment
Högskolan Dalarna, Akademin Industri och samhälle, Nationalekonomi. Örebro university.
Högskolan Dalarna, Akademin Industri och samhälle, Nationalekonomi. HUI.
Högskolan Dalarna, Akademin Industri och samhälle, Nationalekonomi.
2014 (engelsk)Rapport (Annet vitenskapelig)
Abstract [en]

A natural experiment is used to identify the causal relationship between employment protection legislation and fi…rm growth. The natural experiment occurred in Sweden in 2001, when an exemption made it possible for fi…rms with less than eleven employees to exclude two workers from the last-in-fi…rst-out principle when dismissing personnel. The estimated average treatment effect of the reform show that the number of employees increased with 0.135 percent in fi…rms with 5-9 employees relative to fi…rms with 10-15 employees, which corresponds to over 5,000 additional jobs per year created by the reform. Firms with ten employees, just below the size threshold, became 3.4 percent less likely to increase their workforce to a level surpassing the threshold, indicating that the last-in-…first-out rule prevented these …firms from growing. Thus, employment protection legislation seems to act as a growth barrier for small fi…rms.

sted, utgiver, år, opplag, sider
Borlänge: Högskolan Dalarna, 2014. , s. 51
Serie
Working papers in transport, tourism, information technology and microdata analysis, ISSN 1650-5581 ; 2014:05
Emneord [en]
Firm growth, Growth barriers, Employment protection
HSV kategori
Forskningsprogram
Komplexa system - mikrodataanalys
Identifikatorer
URN: urn:nbn:se:du-13932OAI: oai:DiVA.org:du-13932DiVA, id: diva2:703608
Tilgjengelig fra: 2014-03-07 Laget: 2014-03-07 Sist oppdatert: 2015-01-12bibliografisk kontrollert
Inngår i avhandling
1. Unseen Job Creators and Seniority Rules: Two essays on firm growth barriers
Åpne denne publikasjonen i ny fane eller vindu >>Unseen Job Creators and Seniority Rules: Two essays on firm growth barriers
2014 (engelsk)Licentiatavhandling, med artikler (Annet vitenskapelig)
sted, utgiver, år, opplag, sider
Högskolan Dalarna, 2014
HSV kategori
Forskningsprogram
Komplexa system - mikrodataanalys
Identifikatorer
urn:nbn:se:du-16661 (URN)
Opponent
Veileder
Tilgjengelig fra: 2015-01-12 Laget: 2015-01-12 Sist oppdatert: 2015-01-12bibliografisk kontrollert

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