Employment protection and labor productivity
利用瑞典2001年就业保护改革作为自然实验,研究发现小企业豁免资深员工规则后,劳动力市场灵活性提高,进而提升了劳动生产率,这主要源于全要素生产率和资本密集度的增加。
Current theoretical predictions of how employment protection affects firm productivity are ambiguous. In this paper, I study the effect of employment protection rules on labor productivity using Swedish register data. A reform of employment protection rules in 2001 enabled small firms with fewer than eleven employees to exempt two workers from the seniority rules. I treat this reform as a natural experiment. My results indicate that increased labor market flexibility increases labor productivity. This increase is explained by total factor productivity and capital intensity rather than the educational level of workers.