Working Paper Series
Seniority Rules, Worker Mobility and Wages: Evidence from Multi-Country Linked Employer-Employee Data
(), Per Skedinger
() and Roope Uusitalo
Abstract: We construct a multi-country employer-employee data to
examine the consequences of employment protection. We identify the effects
by comparing worker exit rates between units of the same firm that operate
in two countries that have different seniority rules. The results show that
last-in-first-out rules reduce dismissals of older, more senior workers,
especially in shrinking multinational firms, and increase their bargaining
power, resulting in a steeper seniority-wage profile.
Keywords: Multi-country linked employer-employee data; Employment protection legislation; Seniority rules; (follow links to similar papers)
JEL-Codes: J08; J32; J63; K31; L51; (follow links to similar papers)
35 pages, January 8, 2016
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