search query: @indexterm older workers / total: 90
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| Author: | Behaghel, L. Crépon, B. Sédillot, B. |
| Title: | The perverse effects of partial employment protection reform: The case of French older workers |
| Journal: | Journal of Public Economics
2008 : APR, VOL. 92:3-4, p. 696-721 |
| Index terms: | France labour markets legislation companies employment older workers lay-offs |
| Freeterms: | hiring taxes |
| Language: | eng |
| Abstract: | In France, companies laying off workers aged 50 and above must pay a tax to the unemployment insurance system, known as the Delalande tax. Herein, the impact of this tax on layoffs and on hiring is evaluated, taking advantage of several changes in the measure since its introduction in 1987. A legislative change in 1992 exempted firms from the tax for workers hired after age 50. Following this change, the transition rate from unemployment to employment increased remarkably for workers over 50, compared to workers under 50. The difference is considerable: btw. 1/3 and 1/2 of the initial transition rate. Evidence on the effect on layoffs is less distinct. The impact is sizeable only for the most stringent tax schedule, after 1998. |
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