IDEAS home Printed from https://ideas.repec.org/p/kof/wpskof/17-433.html
   My bibliography  Save this paper

Evaluating the Impact of Employment Protection on Firm-Provided Training in an RDD Framework

Author

Abstract

This paper tests the hypothesis that employment protection legislation (EPL) increases the incentives of firms to train their employees. The identification strategy uses a regression discontinuity design (RDD) that exploits exemptions of small firms from EPL. Using firm-level data from Finland and Italy in 2005 and 2010, we do not find empirical evidence that EPL increases the propensity to train or the intensity of firm-provided training. The estimates remain insignificant throughout and mostly have a negative sign. This result is supported in a heterogeneous treatment setting that exploits variation in sector-specific employment volatility. Hence, though the upper bounds of the estimates include economically significant effects, we conclude that EPL has no effect on training of small firms in Finland and Italy.

Suggested Citation

  • Thomas Bolli & Johanna Kemper, 2017. "Evaluating the Impact of Employment Protection on Firm-Provided Training in an RDD Framework," KOF Working papers 17-433, KOF Swiss Economic Institute, ETH Zurich.
    • Handle: RePEc:kof:wpskof:17-433
    DOI: 10.3929/ethz-b-000213958
    as

    Download full text from publisher

    File URL: https://doi.org/10.3929/ethz-b-000213958
    Download Restriction: no
    File URL: https://libkey.io/10.3929/ethz-b-000213958?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bratti, Massimiliano & Conti, Maurizio & Sulis, Giovanni, 2021. "Employment protection and firm-provided training in dual labour markets," Labour Economics, Elsevier, vol. 69(C).
    2. Daniela Sonedda, 2020. "Guess who's there: employment protection legislation and the degree of substitutability between labour contracts," IAAEU Discussion Papers 202007, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    3. Barbieri Teresa & Devicienti Francesco & Manello Alessandro & Vannoni Davide, 2022. "The effect of EPL on the internationalization of small firms," Working papers 078, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.

    More about this item

    Keywords

    Keywords: Employment Protection; Training; Regression Discontinuity; Difference-in-Discontinuity;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kof:wpskof:17-433. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/koethch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.