Open Access

Job Protection — It is Good to be an Insider

   | Nov 07, 2023

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Figure 1

Timing of the model.
Timing of the model.

Figure 2

Differences between CRP and the CTP scheme.
Differences between CRP and the CTP scheme.

Figure 3

Results for Google searches. 100% in July 2009 corresponds to the highest number of searches.Source: Google Trends.
Results for Google searches. 100% in July 2009 corresponds to the highest number of searches.Source: Google Trends.

Figure 4

The total flows have been normalized to their values of December 2005, the time the policy was announced: 2,172 on average in CTP areas and 1265 in control areas. The dashed lines represent (bootstrapped) confidence intervals.
The total flows have been normalized to their values of December 2005, the time the policy was announced: 2,172 on average in CTP areas and 1265 in control areas. The dashed lines represent (bootstrapped) confidence intervals.

Figure 5

The total stocks have been normalized to their values for December 2005: 62,619 workers on average in the CTP zones and 37,069 in the control zones. The dashed lines represent (bootstrapped) confidence intervals.
The total stocks have been normalized to their values for December 2005: 62,619 workers on average in the CTP zones and 37,069 in the control zones. The dashed lines represent (bootstrapped) confidence intervals.

Figure 6

The dashed line shows the 10% (bootstrapped) confidence intervals around the ratios depicted in the same color.
The dashed line shows the 10% (bootstrapped) confidence intervals around the ratios depicted in the same color.

Figure 7

The dashed line shows the 10% (bootstrapped) confidence intervals around the ratios depicted in the same color.
The dashed line shows the 10% (bootstrapped) confidence intervals around the ratios depicted in the same color.

Figure 8

The dashed lines show the 10% (bootstrapped) confidence intervals and the 5% confidence interval.
The dashed lines show the 10% (bootstrapped) confidence intervals and the 5% confidence interval.

Hours worked and total income

Dependent variable: hours worked income

Regression specification: flow stock flow stock
CTP zone (post 15.4.2006) 0.043 (0.088) 0.070 (0.074) 0.031 (0.071) 0.154 (0.099)
CTP × permanent job −0.092 (0.084) −0.042 (0.107) −0.087 (0.108) −0.156 (0.184)
CTP × new firm −0.432** (0.241) −0.116 (0.426) −0.469** (0.233) −0.169 (0.399)
CTP × firm below 1000 −0.016 (0.132) −0.02 (0.085) 0.014 (0.128) −0.093 (0.077)
CTP × firm below 1000 × permanent job 0.063 (0.147) −0.018 (0.119) −0.003 (0.144) 0.072 (0.137)
CTP × new firm × permanent job 0.636*** (0.269) 0.045 (0.337) 0.591** (0.281) 0.176 (0.296)
CTP × previously held permanent job in CTP 0.509* (0.349) −0.018 (0.386) 0.537* (0.387) 0.011 (0.385)
Previously held permanent job in CTP −0.502* (0.358) 0.178 (0.386) −0.557 (0.401) 0.176 (0.389)
CTP × previously held permanent job × holds permanent job 0.142** (0.073) −0.033 (0.086) 0.178 (0.081) 0.089 (0.103)
CTP × previously held permanent job in CTP × holds permanent job −0.908** (0.436) 0.096 (0.407) −1.075* (0.555) −0.029 (0.415)
Previously held permanent job in CTP × holds permanent job 0.866** (0.476) −0.109 (0.393) 1.006* (0.599) −0.0454 (0.398)
average sample size (per pair) 114156 163325 114212 165508
R2 0.37 0.37 0.39 0.40

Impact on hourly Wages

Dependent variable: log hourly wage

Regression specification: (1) flow (2) stock (3) flow (4) stock (5) flow (6) stock (7) flow (8) stock
CTP zone (post 15.4.2006) 0.003 (0.01) 0.056 (0.036) −0.014 (0.026) 0.015 (0.033) −0.015 (0.021) 0.014 (0.032) −0.014 (0.027) 0.015 (0.025)
CTP × permanent job −0.039 (0.03) 0.074* (0.042) 0.008 (0.043) −0.048 (0.04) 0.004 (0.040) −0.049 (0.038) 0.0004 (0.043) −0.05 (0.035)
CTP × firm below 1000 0.03 (0.028) 0.006 (0.022) 0.031 (0.022) 0.006 (0.022) 0.03 (0.026) 0.006 (0.018)
CTP × firm below 1000 × permanent job −0.067* (0.039) 0.013 (0.029) −0.065* (0.036) 0.013 (0.024) −0.064* (0.037) 0.013 (0.032)
CTP × previously held permanent job 0.0279* (0.0144) 0.059*** (0.022) 0.012 (0.014) 0.0026 (0.031)
CTP × previously held permanent job × holds permanent job 0.04* (0.023) 0.075*** (0.029)
CTP × previously held permanent job in CTP × permanent job −0.164 (0.123) −0.132 (0.081)
average sample size (per pair) 113938 162996 113938 162996 113938 162996 113938 162996
R2 0.41 0.49 0.42 0.49 0.42 0.49 0.42 0.50

j.izajolp-2023-0003.tab.005

Revenue Treatment Revenue Control
2005 1 1
2006 0.972 1.009
2007 0.997 1.067

Impact on Duration

Dependent variable: log of duration

Regression specification: (1) flow (2) stock (3) flow (4) stock (5) flow (alt. contr.) (6) stock (alt.contr) (7) flow (8) stock
CTP zone (after 15.4.2006) 0.067 (0.06) 0.105 (0.107) 0.063 (0.087) 0.057 (0.087) 0.053 (0.080) 0.059 (0.108) 0.054 (0.101) 0.062 (0.127)
CTP × permanent job −0.080 (0.074) −0.131 (0.13) −0.027 (0.117) −0.012 (0.117) −0.049 (0.106) −0.009 (0.159) −0.244** (0.116) −0.013 (0.161)
CTP × new firm −0.509*** (0.186) 0.002 (0.186) −0.506*** (0.175) −0.009 (0.367) −0.506*** (0.179) −0.013 (0.337)
CTP × firm below 1000 0.064 (0.148) 0.057 (0.148) 0.066 (0.141) 0.055 (0.133) 0.066 (0.137) 0.053 (0.126)
CTP × firm below 1000 × permanent job −0.115 (0.196) −0.129 (0.196) −0.113 (0.176) −0.126 (0.184) −0.112 (0.159) −0.125 (0.159)
CTP × new firm × permanent job 0.578* (0.319) −0.074 (0.319) 0.548* (0.305) −0.055 (0.361) 0.544* (0.308) −0.052 (0.333)
Previously held permanent job in CTP × currently holds permanent job 0.046 (0.307) 0.172 (0.339)
average sample size (per pair) 114187 163508 114187 163508 114187 163508 114187 163508
R2 0.24 0.29 0.24 0.29 0.24 0.30 0.25 0.31

CTP versus control zones, pre-policy characteristics

CTP Zones Control Zones France (-CTP Zones)
Stock of Permanent Workers 67.1% (4.64) 66.9% (1.39) 65.1% (5.87)
Manufacturing Share 20.8% (11.2) 20.0% (11.5) 19.6% (9.1)
Services Share 71.9% (11.35) 79.0% (11.5) 78.1% (9.6)
Unemployment 9.3% (5.4) 10.4% (4.5) 8.0% (6.3)
Change in Unemployment since 04 −0.66% (0.544) −0.04% (0.35) −0.30% (6.3)
Permanent Share Predicted by Productivity Proxy 57.2% (1.7) 57.4% (1.2) 57.0% (2.6)
Participation Rate 70.7% (4.7) 70.6% (4.4) 71.4% (2.8)
Proportion of Unqualified Workers 17.7% (4.38) 14.8% (3.8) 14.6% (3.9)
Average Age of Workers 39.2 (0.7) 38.6 (0.3) 39.5 (0.8)
Average hourly Wages in 05 (Euro) 14.22 (0.81) 14.01 (0.73) 14.55 (2.78)
Average Gross Income in 05 (Euro) 14258.76 (1207) 14023.09 (743) 13732 (1976)
Non-Residents in Workforce 48.8% (18.0) 52.6% (8.95) 70.5% (27.2)
Locals with Local Job 79.5% (9.6) 78.1% (4.65) 67.8% (19.6)

Hazard Rates

Hazard rate (Cox-model)

Regression specification: (1) flow (2) stock (3) flow (4) stock (5) flow (6) stock (7) flow (8) stock
CTP zone (post 15.4.2006) −0.100 (0.142) 0.018 (0.091) 0.011 (0.243) 0.218 (0.316) 0.0148 (0.24) 0.243 (0.252) 0.007 (0.218) 0.236 (0.272)
CTP × permanent job 0.142 (0.184) −0.037 (0.087) 0.039 (0.326) −0.179 (0.251) 0.063 (0.354) −0.183 (0.249) 0.073 (0.276) −0.176 (0.218)
CTP × firm below 1000 −0.168 (0.212) −0.162 (0.338) −0.172 (0.212) −0.171 (0.255) −0.172 (0.199) −0.16 (0.295)
CTP × firm below 1000 × permanent job −0.433* (0.223) 0.159 (0.255) 0.142 (0.218) 0.166 (0.232) 0.144 (0.193) 0.155 (0.203)
CTP × previously held permanent job −0.096 (0.108) −0.157 (0.187) –0.084 (0.113) –0.138 (0.204)
CTP × previously held permanent job × holds permanent job −1.496* *(0.7) 0.535 (1.6)
CTP × previously held permanent job in CTP × holds permanent job 1.201* (0.705) −0.442 (1.567)
average sample size (per pair) 114187 163508 114187 163508 114187 163508 114187 163508
R2 0.106 0.069 0.126 0.087 0.132 0.108 0.132 0.109

Various Distance Measures of CTP zones in comparison to France and the Control Group

Distance to France Distance to Control Group
Euclidian Distance 34.75 31.87
Size Distance 10.67 9.13
Correlation 0.95 0.96
Correlation Transformed to Euclidian Distance 0.2 0.18
Squared Correlation 0.91 0.93
Chebychev Distance 25.19 22.24
Manhattan Distance 23.46 19.13
Shape Distance Component 1 3.13E-15 4.34E-15
Shape Distance Component 2 32.98 30.15
Shape Distance Component 3 3.29E-15 3.22E-15