Working Paper No. 876

Employment Protection Reform, Enforcement in Collective Agreements and Worker Flows

Published: June 23, 2011, revised February 2015Pages: 48Keywords: Employment protection; Hirings; Separations; Collective agreements; Matched employer-employee dataJEL-codes: J23; J63; J14; J52; K31

Employment Protection Reform, Enforcement in Collective Agreements and Worker Flows Fredrik Heyman and Per Skedinger


We analyse a reform of notice periods for employer-initiated separations in Sweden, which reduced the notice periods for newly hired older workers substantially but implied minor or no changes in the advance notices for younger workers. The reform was initiated at different times depending on collective agreement. These circumstances provide ample opportunity for the identification of its effects. Our findings indicate heterogeneous effects on hirings and separations across collective agreements. A salient feature of the results is that the estimated effects increase with the treatment dose, i.e., the size of the reduction in notice periods across different age groups.

Fredrik Heyman

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Ph: +46 8 665 4537
fredrik.heyman@ifn.se

Per Skedinger

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Ph: +46 8 665 4553
per.skedinger@ifn.se

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Martin Ljunge, IFN, is the author of a chapter, "Trust promotes health: addressing reverse causality by studying children of immigrants", in a new book edited by Sherman Folland and Eric Nauenberg. The cutting edge of research is presented, covering the ever-expanding social capital field.

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