Relaxed dismissal protection : effects on the hiring and firing behaviour of small firms

@inproceedings{Bauernschuster2009RelaxedDP,
  title={Relaxed dismissal protection : effects on the hiring and firing behaviour of small firms},
  author={Stefan Bauernschuster},
  year={2009}
}
  • Stefan Bauernschuster
  • Published 2009
Small firms are seen as important drivers of dynami cs and innovation. They need to be particularly flexible and be able to react quickly to new challenges. This paper uses the latest change in dismissal protection legislation in Germa ny s a natural experiment and tries to find causal effects on the hiring and firing behaviour o f small firms. Using a difference-indifferences approach, I find only small but positiv e effects on the total number of hirings. However, there are substantial… CONTINUE READING

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