Working Paper No. 1061

The Effect of Employment Protection on Labor Productivity

Published: March 16, 2015, revised April 2015Pages: 40Keywords: Employment Protection; Labor Market Regulations; Labor Productivity; Last-in-First-out RulesJEL-codes: D22; J23; J24; J32; J38; K31; M51

The Effect of Employment Protection on Labor Productivity Carl Magnus Bjuggren

The 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 micro data on Swedish firms. A reform of the employment protection rules in 2001 made it possible for small firms with less than eleven employees to exempt two workers from the seniority rules. I exploit the reform as a natural experiment. My results indicate that increased labor market exibility increases labor productivity. The increase is not explained by capital intensity or the educational level of workers.

Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

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