The effect of high dismissal protection on bureaucratic turnover and productivity

We study the impact of high dismissal protection on bureaucratic turnover and productivity in the context of public school teachers in Chile. We take advantage of a law that required education administrators to grant a permanent contract to temporary teachers with at least three consecutive years...

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Detalles Bibliográficos
Autores principales: Lombardi, María, Estrada, Ricardo
Formato: Documento de trabajo submittedVersion
Lenguaje:Inglés
Publicado: Universidad Torcuato Di Tella 2024
Materias:
Productividad laboral
Labour productivity
Condiciones de empleo del docente
Teacher conditions of employment
Legislación educacional
Protección contra el despido
Dismissal Protection
Acceso en línea:https://repositorio.utdt.edu/handle/20.500.13098/12742
Aporte de:
Repositorio Digital Universidad Torcuato Di Tella de Universidad Torcuato Di Tella
id I57-R163-20.500.13098-12742
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spelling I57-R163-20.500.13098-127422025-03-21T21:50:10Z The effect of high dismissal protection on bureaucratic turnover and productivity Lombardi, María Estrada, Ricardo Productividad laboral Labour productivity Condiciones de empleo del docente Teacher conditions of employment Legislación educacional Protección contra el despido Dismissal Protection We study the impact of high dismissal protection on bureaucratic turnover and productivity in the context of public school teachers in Chile. We take advantage of a law that required education administrators to grant a permanent contract to temporary teachers with at least three consecutive years of experience in 2014. Using a difference-in-differences estimation, we first compare the subsequent turnover of teachers with temporary contracts who had two and three years of experience in 2010–2014. We find that on average high dismissal protection reduces turnover by 25 percent in the first two years. The reduction in turnover is only statistically significant among teachers at the bottom and top of the distribution of baseline performance. We then examine the impact of dismissal protection on teacher productivity, and find a significant decline in the learning of students taught by teachers with low baseline performance. Together, these findings are consistent with the hypothesis that high dismissal protection can be a double-edged sword. It can help to retain high-performing employees by increasing the value of staying on the job, but at the cost of making it more difficult to separate and motivate low-performing employees. Documento de Trabajo 2022/03 ///El 07/06/2024 se publicó la versión final de este artículo en el Journal of Human Resources Jun 2024, 0523-12901R2; DOI: https://doi.org/10.3368/jhr.0523-12901R2 2024-06-03T15:37:45Z 2024-06-03T15:37:45Z 2022-06 info:eu-repo/semantics/workingPaper info:eu-repo/semantics/submittedVersion https://repositorio.utdt.edu/handle/20.500.13098/12742 eng info:eu-repo/semantics/openAccess https://creativecommons.org/licenses/by-sa/2.5/ar/ 62 p. application/pdf application/pdf Universidad Torcuato Di Tella Corporación Andina de Fomento (CAF)
institution Universidad Torcuato Di Tella
institution_str I-57
repository_str R-163
collection Repositorio Digital Universidad Torcuato Di Tella
language Inglés
orig_language_str_mv eng
topic Productividad laboral
Labour productivity
Condiciones de empleo del docente
Teacher conditions of employment
Legislación educacional
Protección contra el despido
Dismissal Protection
spellingShingle Productividad laboral
Labour productivity
Condiciones de empleo del docente
Teacher conditions of employment
Legislación educacional
Protección contra el despido
Dismissal Protection
Lombardi, María
Estrada, Ricardo
The effect of high dismissal protection on bureaucratic turnover and productivity
topic_facet Productividad laboral
Labour productivity
Condiciones de empleo del docente
Teacher conditions of employment
Legislación educacional
Protección contra el despido
Dismissal Protection
description We study the impact of high dismissal protection on bureaucratic turnover and productivity in the context of public school teachers in Chile. We take advantage of a law that required education administrators to grant a permanent contract to temporary teachers with at least three consecutive years of experience in 2014. Using a difference-in-differences estimation, we first compare the subsequent turnover of teachers with temporary contracts who had two and three years of experience in 2010–2014. We find that on average high dismissal protection reduces turnover by 25 percent in the first two years. The reduction in turnover is only statistically significant among teachers at the bottom and top of the distribution of baseline performance. We then examine the impact of dismissal protection on teacher productivity, and find a significant decline in the learning of students taught by teachers with low baseline performance. Together, these findings are consistent with the hypothesis that high dismissal protection can be a double-edged sword. It can help to retain high-performing employees by increasing the value of staying on the job, but at the cost of making it more difficult to separate and motivate low-performing employees.
format Documento de trabajo
submittedVersion
author Lombardi, María
Estrada, Ricardo
author_facet Lombardi, María
Estrada, Ricardo
author_sort Lombardi, María
title The effect of high dismissal protection on bureaucratic turnover and productivity
title_short The effect of high dismissal protection on bureaucratic turnover and productivity
title_full The effect of high dismissal protection on bureaucratic turnover and productivity
title_fullStr The effect of high dismissal protection on bureaucratic turnover and productivity
title_full_unstemmed The effect of high dismissal protection on bureaucratic turnover and productivity
title_sort effect of high dismissal protection on bureaucratic turnover and productivity
publisher Universidad Torcuato Di Tella
publishDate 2024
url https://repositorio.utdt.edu/handle/20.500.13098/12742
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