The Impact of Employment Protection Mandates on Demographic Temporary Employment Patterns: International Microeconomic Evidence

By Lawrence M. Kahn. Social Science Research Network, 2007

253 citations recorded by the source corpus.

Using 1994-98 International Adult Literacy Survey (IALS) microdata, this paper investigates the impact of employment protection laws on the incidence of temporary employment by demographic group. More stringent employment protection for regular jobs is predicted to increase the relative incidence of temporary employment for less experienced and less skilled workers. I test this reasoning using IALS data for Canada, Finland, Italy, the Netherlands, Switzerland, the United Kingdom and the United States, countries with widely differing levels of mandated employment protection. Across these countries, the strength of such mandates (as measured by the OECD) is positively associated with the relative incidence of temporary employment for young workers, native women, immigrant women and those with low cognitive ability. These effects largely hold up when I adjust for the possible sample selection due to the fact that employment to population ratios differ across countries. Moreover, the effects of protection on the young, women, and immigrants are stronger in countries with higher levels of collective bargaining coverage, suggesting a connection between binding wage floors and the allocative effects of employment protection mandates.

Subfields: Economics and Econometrics, General Health Professions, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/e922fed4da72238336ad530ba21323f48e39f444

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Citations in the corpus

Labor regulations and contract labor use: Evidence from Indian firms (2015, background): “…analysis of the effects of labor regulations on employment [Botero, Djankov, Porta, and Lopez-DeSilanes (2004), Micco and Pages (2006), Kahn (2007)], within-country analysis of employment protection on productivity [Autor, Kerr, and Kugler (2007), Dougherty, Robles, and Krishna…”
The Gender Wage Gap: Extent, Trends, and Explanations (2017, background): “A final point to note is that, between 1980 and 2000, females’ own wages and income elasticities declined substantially in magnitude (Blau and Kahn 2007; Heim 2007).”
Labor Market Policy: A Comparative View on the Costs and Benefits of Labor Market Flexibility (2010, unknown): “8 employment levels of the less experienced, including youth, women and immigrants (Kahn 2007).”
Early career consequences of temporary employment in Germany and the UK (2010, background): “Overall, dismissal regulations for permanent jobs are more rigid in Germany, and are believed to be the primary reason why employers choose temporary contracts for youths (Kahn, 2007).”
Institutions and the prevalence of nonstandard employment (2015, background): “…2005, 2008; van Stel et al., 2007; Schulze-Buschoff and Protsch, 2008; Hevenstone, 2010; Allmendinger et al., 2013), multilevel approaches (e.g. Kahn, 2007; Baranowska and Gebel, 2010; Gebel and Giesecke, 2011; Román et al., 2011a) and qualitative comparative and fuzzy-set analyses (e.g. Lee,…”