The Effects of Employment Protection on Labor Turnover: Empirical Evidence from Taiwan

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Title:	The Effects of Employment Protection on Labor Turnover: Empirical Evidence from Taiwan
Authors:	Kamhon Kan;Yen-ling Lin
Contributors:	淡江大學經濟學系
Keywords:	Employment protection;Hiring;Separation;Worker flows;Job reallocation;Churning flows;Labor Standards Law
Date:	2011-04
Issue Date:	2011-10-13 11:29:29 (UTC+8)
Publisher:	Hoboken: Wiley-Blackwell Publishing, Inc.
Abstract:	This paper investigates the effects of employment protection legislation on the rates of hiring, separation, worker flows, job reallocation, and churning flows for the case of Taiwan. Our empirical identification takes advantage of a reform created by Taiwan's enactment of Labor Standards Law, which has substantially increased the costs of firing, and the implementation of the law's enforcement measures. Moreover, our identification also exploits the fact that the stringency of the law's provisions and the intensity of the law's enforcement vary with establishment size. On the basis of the monthly data at the establishment level for the period 1983-1995, we find that Taiwan's Labor Standards Law and its enforcement measures have dampened labor turnover for medium-sized and large establishments, while that of small establishments was not affected.
Relation:	Economic Inquiry 49(2), 頁398-433
DOI:	10.1111/j.1465-7295.2009.00278.x
Appears in Collections:	[Graduate Institute & Department of Economics] Journal Article

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