New Working Paper on Trial Periods in Employment

17 Jun 2016

The Treasury published a new Working Paper today looking at the impacts of 90-day employment trial periods.

The Effect of Trial Periods in Employment on Firm Hiring Behaviour is written by Nathan Chappell and Isabelle Sin of Motu Economic and Public Policy Research.

The research summarised in the paper finds no evidence that the introduction of the 90-day trial provision has significantly increased firms’ hiring.

The research also finds no evidence that the policy has increased the probability that a new hire by a firm is a disadvantaged jobseeker, such as a young adult, young Māori, beneficiary or recent migrant.

On the other hand, the research did not find any evidence that the trial period policy has increased short-term hiring or made workers more reluctant to change jobs.

The authors conclude that the main effect of the policy was to reduce dismissal costs for firms.

Working Papers can be viewed on the Treasury website at http://www.treasury.govt.nz/publications/research-policy/wp.

The views, opinions, findings, and conclusions or recommendations expressed in Treasury Working Papers are strictly those of the authors and do not necessarily reflect the views of the New Zealand Treasury or the New Zealand Government.

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