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Labor Market Regulation and Firm Adjustments in Skill Demand
Anna Bottasso
Massimiliano Bratti
Gabriele Cardullo
Maurizio Conti
Giovanni Sulis
出版
IZA - Institute of Labor Economics
, 2023
URL
http://books.google.com.hk/books?id=k7QR0AEACAAJ&hl=&source=gbs_api
註釋
We study how changes in labor market regulation may trigger firm adjustments in skill demand. Leveraging rich administrative data from Italy, we investigate the effects of a reform that reduced firing costs for permanent employees and tightened temporary contracts' regulation to increase job stability. By using a difference-in-differences design, we document that the reform had unintended effects, inducing firms to increase layoffs of unskilled permanent employees and reducing hirings of unskilled workers on temporary contracts, but had no effect on skilled workers or permanent hirings. A theoretical search and matching model with heterogeneous skills and contract durations rationalizes our main findings.
