Employment protection and firm-provided training in dual labour markets
利用意大利Fornero改革(减少15人以上企业解雇限制),通过断点回归发现改革后企业培训工人数增加约1.5人,原因是工人流动减少和永久合同增加,说明就业保护可能抑制培训。
In this paper we leverage a labour market reform (Fornero Law) which reduced firing restrictions for open-ended contracts in the case of firms with more than 15 employees in Italy. The results from a Difference in Regression Discontinuities design demonstrate that after the reform, the number of trained workers increased in firms just above the threshold by approximately 1.5 additional workers. We show that this effect can be explained by the reduction in worker turnover and a higher use of permanent contracts. Our study highlights the potentially adverse effects of employment protection legislation on training in dual labour markets.