Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Research Institute of Industrial Economics (IFN) Working Paper Series

No 1061:
The Effect of Employment Protection on Labor Productivity

Carl Magnus Bjuggren ()

Abstract: The theoretical predictions of how employment protection affects firm productivity are ambiguous. In this paper I study the effect of employment protection rules on labor productivity using micro data on Swedish firms. A reform of the employment protection rules in 2001 made it possible for small firms with less than eleven employees to exempt two workers from the seniority rules. I exploit the reform as a natural experiment. My results indicate that increased labor market exibility increases labor productivity. The increase is not explained by capital intensity or the educational level of workers.

Keywords: Employment Protection; Labor Market Regulations; Labor Productivity; Last-in-First-out Rules; (follow links to similar papers)

JEL-Codes: D22; J23; J24; J32; J38; K31; M51; (follow links to similar papers)

40 pages, March 16, 2015, Revised April 16, 2015

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

wp1061.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:iuiwop:1061 This page was generated on 2016-10-11 23:29:29