Last in, first out?: Estimating the effect of seniority rules in Sweden

摘要: In this paper we investigate whether a relaxation in seniority rules (the “last-in-first-out” principle) had any effect on firms' employment behaviour. Seniority exist several countries, but consequences of behaviour have not been examined previously. The principle Sweden was reformed January 2001 such that employers with ten or fewer employees were allowed to exempt two workers from the rule. Using an employer–employee unbalanced panel data for period 1996–2005, find both hires and separations increased small firms relative large by 5%. This also implies there no effects net employment. Our results show reacted changes rules, argue are overwhelmingly large.