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

13Citations
Citations of this article
28Readers
Mendeley users who have this article in their library.
Get full text

Abstract

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. JEL codes: J23, J65, K31

Cite

CITATION STYLE

APA

Pierre, G., & Scarpetta, S. (2013). Do firms make greater use of training and temporary employment when labor adjustment costs are high? IZA Journal of Labor Policy, 2(1). https://doi.org/10.1186/2193-9004-2-15

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free