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Is regulatory compliance by employers possible without enforcement?: Evidence from the Swedish labor market
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Government. Uppsala Center for Labor Studies.ORCID iD: 0000-0001-8405-795x
2019 (English)Report (Other academic)
Abstract [en]

This study shines new light on an ongoing debate about the extent to which discouraging enforcement activities are necessary to make regulated actors comply with government regulations. Specifically, it evaluates a long-standing but essentially unenforced regulation that mandated employers in Sweden to post their vacancies at the Public Employment Service (PES) to improve matching and the labor market prospects of disadvantaged workers. Using comprehensive vacancy data from the PES, it tests whether the regulation – despite not being enforced – influenced employers' vacancy posting behavior in the period prior to its partial repeal in 2007. Exploiting the fact that the repeal did not apply to employers in the central government sector, the difference-in-differences analyses conducted in this study identify a substantial and significant negative effect of repealing the unenforced law on employers' vacancy posting behavior, under reasonable assumptions. This finding is at odds with standard deterrence models of regulatory compliance and hints at an important role for organizational factors related to cultures and norms. A supplementary analysis of heterogeneous effects among local government employers investigates to what extent some organizational factors are correlated to compliance with the unenforced regulation.

Place, publisher, year, edition, pages
Uppsala, 2019. , p. 40
Series
IFAU Working Paper Series, ISSN 1651-1166 ; 2019:23
Keywords [en]
Regulatory compliance, Public Employment Service, employers, vacancy posting, difference-in-differences analysis
National Category
Public Administration Studies
Research subject
Political Science; Economics
Identifiers
URN: urn:nbn:se:uu:diva-395235OAI: oai:DiVA.org:uu-395235DiVA, id: diva2:1361344
Projects
Är regelefterlevnad möjlig utan sanktioner? IFAU projekt nr 174/2017
Funder
Institute for Evaluation of Labour Market and Education Policy (IFAU), 174/2017Available from: 2019-10-15 Created: 2019-10-15 Last updated: 2019-10-16Bibliographically approved

Open Access in DiVA

IFAU Working Paper 2019:23(767 kB)22 downloads
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Type fulltextMimetype application/pdf

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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
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