Do firms make greater use of training and temporary employment when labor adjustment costs are high?

In this paper, we present evidence on how employers in developing and emerging economies perceive employment regulations and react to them. We use harmonized surveys of about 10,800 firms around the world, supplemented by indicators of the stringency of employment protection that summarize detailed...

Full description

Saved in:
Bibliographic Details
Published in:IZA journal of labor policy 2013-01, Vol.2 (Art. 15), p.17-2:Art. 15<17, Article 15
Main Authors: Pierre, Gaëlle, Scarpetta, Stefano
Format: Article
Language:English
Subjects:
Arbeitgeber
Auswirkung
Befristeter Arbeitsvertrag
Betriebliche Weiterbildung
Economic Policy
Economics
Economics and Finance
Employment protection indicators
Entwicklungsland
Firm surveys
Internationaler Vergleich
Kosten
Kündigungsschutz
Labor Economics
On-the-Job-Training
Original Article
Personalanpassung
Population Economics
Regulation
Schwellenland
Social Policy
Temporary employment
Training
Weiterbildungsangebot
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In this paper, we present evidence on how employers in developing and emerging economies perceive employment regulations and react to them. We use harmonized surveys of about 10,800 firms around the world, supplemented by indicators of the stringency of employment protection that summarize detailed aspects of the labor legislation. We find that firms facing tight employment protection invest more in training, but also use temporary contracts to enhance labor flexibility. Using a difference-in-difference approach to control for unobservable characteristics, we find that small firms and those in sectors characterized by greater job reallocation are the most directly affected by employment protection.
ISSN:2193-9004
2193-9004
DOI:10.1186/2193-9004-2-15