Job Flow Dynamics and Firing Restrictions: Evidence from Europe
By Julián Messina, Giovanna Vallanti. Social Science Research Network, 2007
142 citations recorded by the source corpus.
We exploit homogeneous firm level data of manufacturing and non-manufacturing sectors to study the impact of firing restrictions on job flow dynamics across 14 European countries. We find that more stringent firing laws dampen the response of job destruction to the cycle, thus making job turnover less counter-cyclical. Moreover, the impact of firing costs on job creation and job destruction varies across sectors, depending on sector-specific trend growth. Our findings clearly suggest that such costs are more important in contracting than in growing sectors.
Subfields: Economics and Econometrics, General Health Professions
View Paper: https://www.semanticscholar.org/paper/3b470d186fec62a0ed981e1dad95728842dbd651
Citations in the corpus
- Firing Costs and Capital Structure Decisions (2016, unknown): “For example, Messina and Vallanti (2007) show that more stringent European firing laws significantly weaken the relation between layoffs and the business cycle, and Kugler and Pica (2008) find that higher dismissal costs in Italy reduce worker separation rates.6 This lower sensitivity of workforce…”
- The Impact of Employment Protection Mandates on Demographic Temporary Employment Patterns: International Microeconomic Evidence (2007, unknown): “14 In light of the possible differing effects of EPL by sector (Messina and Vallanti, 2007; Koeniger and Prat, 2007), I also tested a series of EPL–demographic interactions with employment in agriculture and employment in manufacturing (included in the logits simultaneously).”
- The Effect of Employment Protection Legislation and Financial Market Imperfections on Investment: Evidence from a Firm-Level Panel of EU Countries (2009, unknown): “Therefore, without any doubt, the sample is biased toward countries with more de- 3 See Messina and Vallanti (2007) and Konings et al. (2005) for descriptions of Amadeus in different research contexts.”