Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298752 
Year of Publication: 
2020
Citation: 
[Journal:] IZA Journal of Labor Policy [ISSN:] 2193-9004 [Volume:] 10 [Issue:] 1 [Article No.:] 9 [Year:] 2020 [Pages:] 1-51
Publisher: 
Sciendo, Warsaw
Abstract: 
Recent changes in New Zealand law decreased the cost of dismissing employees within their first 3 months with an employer, with the aim of encouraging firms to increase hiring by reducing the associated risk. We use monthly linked employer-employee data and exploit the staggered introduction of the policy to estimate its effect on hiring. We find that the policy had little effect on the number of hires, the hiring of jobseekers of unknown quality, or the stability of employment. Our results suggest that policies that temporarily lower dismissal costs do not necessarily increase firm hiring.
Subjects: 
trial periods
employment protection legislation
labor market flexibility
firm hiring
JEL: 
J08
J23
J63
J64
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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