Frisch seminar: Dinara Alpysbayeva

Labor market rigidities and misallocation

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Abstract: This paper estimates the impact of labor market rigidities on labor misallocation. To this end, we use a recent policy change in Belgium, leading to an increase in employment protection for blue-collar workers and a decrease in employment protection for white-collar workers. Using a rich data set of the universe of Belgian firms, the findings indicate that the policy lowered the allocative efficiency of blue-collar intensive firms.


Published July 29, 2021 1:10 PM - Last modified Nov. 22, 2021 9:20 AM