The effect of trial periods in employment on firm hiring behavior
| Autor: | Nathan Chappell, Isabelle Sin |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Organizational Behavior and Human Resource Management
Economics and Econometrics Labour economics Employment protection legislation Legislation Unit (housing) Seekers Dismissal 0502 economics and business Economics otorhinolaryngologic diseases j64 050207 economics j63 Industrial relations health care economics and organizations 050205 econometrics firm hiring ComputingMilieux_THECOMPUTINGPROFESSION 05 social sciences technology industry and agriculture j23 Labor policy. Labor and the state j08 HD7795-8027 Disadvantaged respiratory tract diseases Job security labor market flexibility trial periods employment protection legislation geographic locations |
| Zdroj: | IZA Journal of Labor Policy, Vol 10, Iss 1, Pp 915-957 (2020) |
| ISSN: | 2193-9004 |
| Popis: | An amendment to legislation in 2009 enabled New Zealand firms with fewer than 20 employees to hire new workers on trial periods. The scheme was subsequently extended to employers of all sizes. The policy was intended to encourage firms to take on more employees, and particularly more disadvantaged job seekers, by reducing the risk associated with hiring an unknown worker. We use unit record linked employer-employee data and the staggered introduction of the policy for firms of different sizes to assess the policy effect on firm hiring behaviour. We find no evidence that the policy affected the number of hires by firms on average, either overall or into employment that lasted beyond the trial period. We also do not find an effect on hiring of disadvantaged jobseekers. However, our results suggest that the policy increased hiring in industries with high use of trial periods by 10.3 percent. We conclude that the main benefit of the policy was a decrease in dismissal costs for firms, while many employees faced increased uncertainty about their job security for three months after being hired. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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