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Department of Economics, Aarhus School of Business, University of Aarhus Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus

No 07-3:
Job Security and New Restrictive Permanent Contracts. Are Spanish Workers More Worried of Losing Their Job?

Elisabetta Trevisan

Abstract: This paper investigates the impact of the introduction of new restrictive permanent contracts on the perceived job security of the workers in Spain. The perceived job security is strongly influenced by the characteristics of individuals and their distribution within the groups. Comparing heterogeneous groups could make the traditional DID estimator biased. To address this issue I combine the propensity score matching with a fixed effect estimator. The analysis is conducted using data drawn from the ECHP Survey for Spain from 1995 to 2000. The result is that this reform has a positive impact only for one targeted group, i.e. the young workers and no effect for the others. Several robustness checks are performed.

Keywords: Job Security; Firing Costs; Evaluation Policy; Fixed Effect Estimator; (follow links to similar papers)

JEL-Codes: C14; C33; J28; (follow links to similar papers)

39 pages, April 18, 2007

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