Who is Protected by Employment Protection?

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Authors: Laura Montenovo, Joseph Pickens
Cited by: 1
References: 49

Abstract

Abstract This paper examines how loosening employment protection legislation (EPL) affects workers with different characteristics. Exploiting a 2012 Italian law, the “Fornero Reform,” and using a difference-in-differences strategy on administrative data, we causally estimate heterogeneous effects on termination rates by sex-age, job rank, income, industry, and tenure. We find a relative increase in terminations for high-tenure, white-collar, and manufacturing workers. Though not direct evidence, this suggests that the stricter EPL was providing more protection to these worker groups on average. Further, the high-tenure increase may indicate that poor performers were protected for many years pre-reform. Our findings add to the EPL heterogeneous effect literature and limited work on the interaction between EPL and tenure.

Fields of Study & Subjects

Employment and Welfare Studies Labor Movements and Unions Social Policy and Reform Studies

Publication details

Journal / source
The B E Journal of Economic Analysis & Policy
Publisher
Walter de Gruyter GmbH
Volume
26
Issue
3
Pages
827–852
Publication date
22 April 2026
Language
EN