This appendix details changes in Norwegian labor law introduced by the 2005 Working Environment Act. The goal was to assess whether the Act affected large and small companies differently or regulated layoffs and employment termination. The Act applies equally to public and private companies, regardless of whether they are listed on an exchange. Section I lists provisions contingent on the number of employees, while Section II outlines provisions regulating employment termination. Most provisions remained unchanged, except for new employer consultation requirements. These consultations apply to firms with at least 50 employees and may affect productivity and costs. Collective redundancies and other provisions also remained largely unchanged. The 2005 Act updated the 1977 law, with specific references provided.
Section I includes provisions contingent on the number of employees, such as employer consultations, collective redundancies, and work environment standards for contract workers. Section II includes provisions regulating employment termination, such as summary dismissal, protection against dismissal during sickness, and protection for employees on military service. The Act introduced new provisions, such as allowing employee suspension during investigations, but these changes did not significantly affect layoffs.
Appendix B presents additional robustness tests for the main results on the gender quota for board composition, short-term profits, and labor outcomes. The analysis shows that firms furthest from compliance in 2006 experienced greater effects of the law. Firms with no women on their boards in 2006 saw significant declines in profits and increases in employment and costs. The incidence of layoffs declined for all treated firms, with larger effects for firms with some women on their boards. The results suggest that the gender quota had a significant impact on labor outcomes, rather than other unobserved shocks. The analysis also rules out other possible explanations, such as government ownership, petroleum industry effects, and unionization differences. The results are further supported by a falsification test using data from a previous global recession, showing no significant changes in profits, employment, or layoffs for Norwegian listed firms. The findings indicate that the gender quota was the key factor influencing labor outcomes.This appendix details changes in Norwegian labor law introduced by the 2005 Working Environment Act. The goal was to assess whether the Act affected large and small companies differently or regulated layoffs and employment termination. The Act applies equally to public and private companies, regardless of whether they are listed on an exchange. Section I lists provisions contingent on the number of employees, while Section II outlines provisions regulating employment termination. Most provisions remained unchanged, except for new employer consultation requirements. These consultations apply to firms with at least 50 employees and may affect productivity and costs. Collective redundancies and other provisions also remained largely unchanged. The 2005 Act updated the 1977 law, with specific references provided.
Section I includes provisions contingent on the number of employees, such as employer consultations, collective redundancies, and work environment standards for contract workers. Section II includes provisions regulating employment termination, such as summary dismissal, protection against dismissal during sickness, and protection for employees on military service. The Act introduced new provisions, such as allowing employee suspension during investigations, but these changes did not significantly affect layoffs.
Appendix B presents additional robustness tests for the main results on the gender quota for board composition, short-term profits, and labor outcomes. The analysis shows that firms furthest from compliance in 2006 experienced greater effects of the law. Firms with no women on their boards in 2006 saw significant declines in profits and increases in employment and costs. The incidence of layoffs declined for all treated firms, with larger effects for firms with some women on their boards. The results suggest that the gender quota had a significant impact on labor outcomes, rather than other unobserved shocks. The analysis also rules out other possible explanations, such as government ownership, petroleum industry effects, and unionization differences. The results are further supported by a falsification test using data from a previous global recession, showing no significant changes in profits, employment, or layoffs for Norwegian listed firms. The findings indicate that the gender quota was the key factor influencing labor outcomes.