Two Tier Reforms of Employment Protection: A Honeymoon Effect?  

Oleh:

Boeri, Tito ; Garibaldi, Pietro

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Economic Journal (EBSCO) vol. 117 no. 521 (Jun. 2007), page F357-F385.
Topik: employment; employment protection; honeymoon
Fulltext: F357.pdf (757.31KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: EE28.26 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

Labour market reforms increasing flexibility 'at the margin' have been recently paying out in terms of employment growth. This article argues that two - tier labour market reforms have a transitional 'honeymoon', job creating effect. In a dynamic model of labour demand under uncertainty, the article predicts that in the aftermath of reforms, beyond an increase in employment, there should be a reduction in 'employment inaction' and in the mean and cross - sectional variance of labour productivity. Based on a variety of firm - level data on Italy in the period 1995 – 2000, we find evidence of our empirical implications.

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