Summary
The degree of employment protection affects employment flows as well as work effort of employees. Whereas the former aspect has been analysed in many studies, the impact of employment protection on work effort has been analysed in few recent studies. Theory predicts that employment protection reduces work effort because employee shirking cannot be that easily punished by the firm, which decreases the separation probability and increases the expected utility for a shirker in efficiency wage models. Personnel records of a German company are used to assess the impact of lower employment protection during probation on worker absenteeism as a proxy for work effort. The main finding is that new white-collar workers are on average more than 50 percent less likely to be absent and have on average more than 60 percent fewer absent working days during the three months probation period compared to the nine months period afterwards. These relative effects differ only slightly between the genders and between different age and educational groups.
© 2010 by Lucius & Lucius, Stuttgart
Articles in the same Issue
- Inhalt / Contents
- Abhandlungen/Original Papers
- Erwartete externe Effekte und Wahlverhalten: Das Beispiel der Münchner Allianz-Arena / Expected External Effects and Voting: The Case of the Munich Allianz-Arena
- Fields of Training, Plant Characteristics and the Gender Wage Gap in Entry Wages Among Skilled Workers – Evidence from German Administrative Data
- International Financial Competitiveness and Incentives to Foreign Direct Investment
- What Drives Housing Prices Down? Evidence from an International Panel
- Work Effort During and After Employment Probation: Evidence from German Personnel Data
- Human Capital Externalities and Growth of High- and Low-Skilled Jobs
- Erhöhung der Mehrwertsteuer für Lebensmittel: Budget- und Wohlfahrtseffekte für Konsumenten / Increase of the Value Added Tax (VAT): Budget- and Welfare- Effects for Consumers
- Buchbesprechungen / Book Reviews
Articles in the same Issue
- Inhalt / Contents
- Abhandlungen/Original Papers
- Erwartete externe Effekte und Wahlverhalten: Das Beispiel der Münchner Allianz-Arena / Expected External Effects and Voting: The Case of the Munich Allianz-Arena
- Fields of Training, Plant Characteristics and the Gender Wage Gap in Entry Wages Among Skilled Workers – Evidence from German Administrative Data
- International Financial Competitiveness and Incentives to Foreign Direct Investment
- What Drives Housing Prices Down? Evidence from an International Panel
- Work Effort During and After Employment Probation: Evidence from German Personnel Data
- Human Capital Externalities and Growth of High- and Low-Skilled Jobs
- Erhöhung der Mehrwertsteuer für Lebensmittel: Budget- und Wohlfahrtseffekte für Konsumenten / Increase of the Value Added Tax (VAT): Budget- and Welfare- Effects for Consumers
- Buchbesprechungen / Book Reviews