Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus
Job Security and New Restrictive Permanent Contracts. Are Spanish Workers More Worried of Losing Their Job?
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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