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Job Security Provisions and Employment: Revised Estimates
Author(s) -
ADDISON JOHN T.,
GROSSO JEANLUC
Publication year - 1996
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/j.1468-232x.1996.tb00423.x
Subject(s) - severance , notice , unemployment , economics , statutory law , labour economics , job security , demographic economics , macroeconomics , work (physics) , political science , law , engineering , mechanical engineering
This article provides estimates of the effect of statutory severance pay and notice on four labor market outcome indicators, closely following Lazear (1990) but correcting for errors in his dependent variables and covariates. Although we corroborate the directional influence of severance pay for three of the indicators, there is little to suggest that its contribution to rising unemployment is material. Also contrary to Lazear, longer notice appears to be associated with broadly favorable outcomes.