Labour: "When Protection Puts You in Jeopardy -- How Removing Small-Business Clauses Affects Employment Duration" (Lücke)
New publication by Christine Lücke:
In a 2004 reform, Germany exempted small firms from dismissal protection. This paper estimates the effects of dismissal protection on the risk of leaving the establishment, taking advantage of the fact that workers employed before the amendment maintained their previous dismissal protection. Utilizing administrative linked employeremployee data, the results hint at a higher risk during the first 6 months in a job and a lower risk thereafter, if dismissal protection is provided. The estimated survivor curves suggest that even after 5 years the protecting effect of dismissal protection did not compensate the initially adverse effect during the first 6 months of tenure.
The publication can be found here.