Resource title

Does Employment Protection Reduce the Demand for Unskilled Labor?

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Resource description

Perhaps it does. We propose a model in which workers with little education or in the tails of the age distribution – the inexperienced and the old – have more chance of job failure (mismatch). Recruits? average education should then increase and the standard deviation of starting age decrease when strict employment protection raises hiring and firing costs. We test the model using annual distributions of recruits? characteristics from a 1975-95 panel of plants in Belgium, the Netherlands, Italy, the UK and the US. The model?s predictions are supported using the Blanchard-Wolfers index of employment protection as well as our alternative index.

Resource author

Kirsten Daniel, William Stanley Siebert

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Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/20556

Resource license

Adapt according to the presented license agreement and reference the original author.