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Séminaire d’économie de Bordeaux
Michal Myck
Pre-retirement employment protection: No harm when times are good
Employees in Poland with less than four years before they reach statutory retirement age are covered by strict labor protection legislation. It restricts employers’ ability to lay them off, to lower their wages and to adjust their responsibilities. Such regulations may have unintended negative implications for employment among those who are nearing the age when the legislation becomes binding for their employers. We examine this issue using population-level administrative data and quasi-random variation in cohorts covered by employment protection generated by a reform which lowered statutory retirement age to 60 (women) and 65 (men). Our results show no economically meaningful negative effects of the legislation on employment of either men or women nearing the age of eligibility for protection while the largest statistically signicant estimate in our preferred specication implies a trivial reductions in employment for women of less than -0.5 pp (or less than 1%). This suggests either that these effects are absent or any potential concerns of employers related to prospective employment protection were counteracted by strong labour demand at the time.
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