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Seniority rules, worker mobility and wages: evidence from multi-country linked employer-employee data
Turku School of Economics, Finland ; Labour Institute for Economic Research, Finland ; IZA, Germany.
Linnaeus University, School of Business and Economics, Department of Economics and Statistics. Research Institute of Industrial Economics (IFN).ORCID iD: 0000-0003-4945-1577
Jyväskylä University School of Business and Economics, Finland.
2018 (English)In: Labour Economics, ISSN 0927-5371, E-ISSN 1879-1034, Vol. 51, p. 48-62Article in journal (Refereed) Published
Abstract [en]

We construct multi-country employer-employee data to examine the consequences of last-in, first-out rules. We identify the effects by comparing worker exit rates between different units of the same firms operating in Sweden and Finland, two countries that have different seniority rules. We observe a relatively lower exit rate for more senior workers in Sweden in the shrinking firms and among the low-wage workers. These empirical patterns are consistent with last-in, first-out rules in Sweden providing protection from dismissals for the more senior workers among the worker groups to whom the rules are most relevant. Similarly, we observe a steeper seniority-wage profile in Sweden, suggesting that last-in, first-out rules may also be beneficial for more senior workers in terms of compensation.

Place, publisher, year, edition, pages
Elsevier, 2018. Vol. 51, p. 48-62
Keyword [en]
Multi-country linked employer-employee data, Employment protection legislation, Seniority rules, Last-in first-out rules, Seniority-wage profile
National Category
Economics
Research subject
Economy, Economics
Identifiers
URN: urn:nbn:se:lnu:diva-73330DOI: 10.1016/j.labeco.2017.11.006OAI: oai:DiVA.org:lnu-73330DiVA, id: diva2:1200072
Available from: 2018-04-23 Created: 2018-04-23 Last updated: 2018-05-02Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf