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Does job security hamper employment prospects?
Research Institute of Industrial Economics (IFN).
Linnaeus University, School of Business and Economics, Department of Economics and Statistics. Research Institute of Industrial Economics (IFN). (Linnaeus University Centre for Discrimination and Integration Studies)ORCID iD: 0000-0003-4945-1577
2018 (English)Report (Other academic)
Abstract [en]

We use a reform in the Swedish employment protection legislation (EPL) that decreased dismissal costs for small firms only, to investigate the effect of EPL on the propensity to hire workers who were unemployed or in active labor market programs (ALMPs). The results indicate that less stringent EPL increased the share of workers hired from unemployment. In addition, our results suggest that transitions from some ALMPs to employment increased. Taken together, our results suggest that there was less screening of new hires after the reform, and that liberalization of EPL mitigates the stigma associated with unemployment and participation in ALMPs.

Place, publisher, year, edition, pages
Linnaeus University Centre for Discrimination and Integration Studies , 2018. , p. 35
Series
Working paper series: Linnaeus University Centre for Discrimination and Integration Studies ; 2018:7
Keywords [en]
Employment protection, Active labor market programs, Unemployment
National Category
Economics
Research subject
Economy, Economics
Identifiers
URN: urn:nbn:se:lnu:diva-80832OAI: oai:DiVA.org:lnu-80832DiVA, id: diva2:1291802
Available from: 2019-02-26 Created: 2019-02-26 Last updated: 2019-02-26Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf