Showing papers on "Employment protection legislation published in 2014"
TL;DR: Andrews et al. as discussed by the authors examined the extent to which these differences depend on regulations affecting product, labour and credit markets, and assessed their relevance for aggregate productivity, finding that there is an economically and statistically robust negative relationship between policy-induced frictions and productivity, though the specific channel depends on the policy considered.
Abstract: The relationship between a firm's size and its productivity level varies considerably across OECD countries, suggesting that some countries are more successful at channelling resources to high productivity firms than others. In this paper, we examine the extent to which these differences depend on regulations affecting product, labour and credit markets, and assess their relevance for aggregate productivity. To this purpose, we exploit a decomposition of industry productivity into a moment of the firm productivity distribution (the unweighted mean), and a moment of the joint distribution with firm size (the covariance between productivity and market shares – allocative efficiency). We apply such decomposition to a cross section of more than 800 country-industry cells and estimate the relevance of regulation policies for each of the two terms exploiting cross-industry differences in exposure to the policy. Our results suggest that there is an economically and statistically robust negative relationship between policy-induced frictions and productivity, though the specific channel depends on the policy considered. In the case of employment protection legislation, product market regulations (including barriers to entry and bankruptcy legislation) and restrictions on foreign direct investment, this is largely traceable to the worsening of allocative efficiency (i.e. a lower correspondence between a firm's size and its productivity level). By contrast, the adverse impact of financial market under-development on aggregate productivity tends to arise through shifts in the firm productivity distribution (i.e. a lower unweighted mean). Furthermore, stringent regulations are more disruptive to resource allocation in more innovative sectors.
— Dan Andrews and Federico Cingano
142 citations
TL;DR: In this paper, the authors focus on the impacts of two important types of labor market regulation, minimum wages and employment protection legislation (EPL), on employment, earnings, and productivity.
Abstract: Labor market regulation is a high-profile, and often contentious, area of public policy. Although these regulations have been studied most extensively in developed countries, there is a growing body of literature on their effects in developing countries. This paper reviews that literature and focuses on the impacts of two important types of labor market regulation, minimum wages and employment protection legislation (EPL), on employment, earnings, and productivity. Strong and opposing views exist regarding the costs and benefits of these regulations, but the results of this review suggest that their impacts are generally smaller than the heat of the debates would suggest. Efficiency effects are found sometimes, but not always, and the effects can be in either direction and are usually modest. The distributional impacts of both minimum wage and employment protection legislation are clearer, with two effects predominating: an equalizing effect among covered workers, but with groups such as youth, women, and the less skilled disproportionately outside the coverage and its benefits. Although the overall conclusion is one of modest effects in most cases, the policy implication is not that these regulations do not matter. On the one hand, both minimum wages and EPL can affect distributional objectives. On the other hand, these regulations can generate undesirable economic or social impacts if they are established or operate in ways that exacerbate the labor market imperfections that they were designed to address.
99 citations
TL;DR: The theoretical effects of labor regulations, such as employment protection legislation (EPL), on innovation is ambiguous as mentioned in this paper, but empirical evidence suggests that these effects are at work, in particular, a higher share of multinational enterprise innovative activity in countries with high EPL is technologically advanced.
Abstract: The theoretical effects of labor regulations, such as employment protection legislation (EPL), on innovation is ambiguous. EPL increases job security, and the greater enforceability of job contracts may increase worker investment in innovative activity. But EPL increases firms' adjustment costs, which may lead to underinvestment in activities that are likely to require adjustment, including technologically advanced innovation. In this paper, we find empirical evidence that these effects are at work—in particular, a higher share of multinational enterprise innovative activity in countries with high EPL is technologically advanced.
80 citations
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TL;DR: A brief overview and discussion of research on the labor market impacts of minimum wages (MW), unemployment insurance (UI), and employment protection legislation (EPL) can be found in this paper.
Abstract: The past couple of decades have seen a huge increase in research on various labor market institutions. This paper offers a brief overview and discussion of research on the labor market impacts of minimum wages (MW), unemployment insurance (UI), and employment protection legislation (EPL). It is argued that research on UI is largely a success story, involving a fruitful interplay between search theory and empirical work. This research has established that UI matters for labor market behavior, in particular the duration of unemployment, although there remains substantial uncertainty about the magnitudes of the effects. The research on MW should have shaken economists’ belief in the competitive labor market model as a result of frequent failures to find noticeable employment effects despite considerable effects on wages. EPL research has established that employment protection reduces labor and job turnover but the jury is still out regarding the impact on overall employment and productivity.
44 citations
TL;DR: In this article, a new working paper is intended to map reforms of employment protection law in the member states with the aim of addressing these legal changes in the context of the crisis, but also in the framework of the deregulation agenda of the European Commission.
Abstract: This new working paper is intended to map reforms of employment protection law in the member states with the aim of addressing these legal changes in the context of the crisis, but also in the context of the deregulation agenda of the European Commission.
42 citations
TL;DR: In this paper, the impact of employment protection legislation (EPL) on firms' investment policies in the presence of financial imperfections has been analyzed, showing a negative correlation between EPL levels and investments.
41 citations
TL;DR: A brief overview and discussion of research on the labor market impacts of minimum wages (MW), unemployment insurance (UI), and employment protection legislation (EPL) can be found in this article.
33 citations
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TL;DR: In this paper, the causal effect of perceived job insecurity on health in a sample of men from 22 European countries was estimated using an original instrumental variable approach based on the idea that workers perceive greater job security in countries where employment is strongly protected by the law, and relatively more so if employed in industries where employment protection legislation is more binding.
Abstract: This paper estimates the causal effect of perceived job insecurity – i.e. the fear of involuntary job loss – on health in a sample of men from 22 European countries. We rely on an original instrumental variable approach based on the idea that workers perceive greater job security in countries where employment is strongly protected by the law, and relatively more so if employed in industries where employment protection legislation is more binding, i.e. in industries with a higher natural rate of dismissals. Using cross-country data from the 2010 European Working Conditions Survey, we show that when the potential endogeneity of job insecurity is not accounted for, the latter appears to deteriorate almost all health outcomes. When tackling the endogeneity issue by estimating an IV model and dealing with potential weak-instrument issues, the health-damaging effect of job insecurity is confirmed for a limited subgroup of health outcomes, namely suffering from headaches or eyestrain and skin problems. As for other health variables, the impact of job insecurity appears to be insignificant at conventional levels.
30 citations
TL;DR: In this article, a short overview of dynamic models of labor markets with transaction costs is presented, and the authors argue that these models have deeply renewed the understanding of job search, job flows, job creation and destructions, unemployment and wage formation.
30 citations
TL;DR: The authors conducted multi-level regression analyses across 18 OECD countries around the year 2004, analyzing the effects of social policies on the likelihood of being poor for low-skilled young women and men, and for those at risk of possessing obsolete skills, namely low-educated men aged 55-64 years.
Abstract: This article considers groups who are most likely to be vulnerable to new social risks and tests the effects of social policies on their poverty levels. Specifically, the article conducts multi-level regression analyses across 18 OECD countries around the year 2004, analysing the effects of social policies on the likelihood of being poor for low-skilled young women and men, and for those at risk of possessing obsolete skills, namely low-educated men aged 55–64 years. The central question asks which policies – active labour market policies (ALMP), passive labour market policies (PLMP), employment protection legislation (EPL), family policies, and government daycare spending – are effective at combating new social risks. In addition to analysing social policies, the article also considers union density and representation of women in national parliaments as two measures that depict agents who are most intent on combating old and new social risks, respectively. The findings show that ALMP are the most important predictor of a decrease in poverty levels among the low skilled. The negative effect of PLMP on poverty is only significant for the older male group. Family policies are related to a reduction in poverty for both low-skilled young women and men. Gross public social spending as a measure of overall welfare generosity is found to be associated with a reduction in poverty only of the older male group, but not that of the younger groups. The article’s analyses suggest that some social policies remain geared towards older segments of society, leaving the younger population at greater financial and therefore social risk.
29 citations
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01 Jan 2014
TL;DR: In this paper, the authors examined the effects of labor market reform on establishment performance in different Indian states over a contemporaneous period using plant-level data for a period from the late 1990s to the late 2000s.
Abstract: We examine the effects of labor market reform on establishment performance in different Indian states over a contemporaneous period. Using plant-level data for a period from the late 1990s to the late 2000s, the study provides plant-level cross-state/time-series evidence of the impact of reforms of employment protection legislation and related labor market policies on productivity in India. Identification of the effect of employment protection legislation follows from a difference-indifferences estimator inspired by Rajan and Zingales (1998) that takes advantage of the state-level variation in labor regulation and heterogeneous industry characteristics. The fundamental identification assumption is that employment protection legislation is more likely to restrict firms operating in industries with higher labor intensity and/or higher sales volatility. The results show that firms in labor intensive or more volatile industries benefited the most from labor reforms in their states. Point estimates indicate that, on average, firms in labor intensive industries and in flexible labor markets have total factor productivity residuals 25.4% higher than those registered for their counterparts in states with more stringent labor laws.
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TL;DR: In this article, the authors analyzed the labor market outcomes in the Western Balkan countries by comparison with the New Member States of the European Union and advanced European economies and found that long-lasting labor market weaknesses in these countries have structural roots: the institutional setup of the labor markets, labor cost factors and especially the unfinished transition process.
Abstract: Labor markets in the Western Balkan countries (Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro, and Serbia) are characterized by some of the highest unemployment and low employment rates in Europe. We analyze the poor labor market outcomes in these countries by comparison with the New Member States of the European Union and advanced European economies. Our findings suggest that long-lasting labor market weaknesses in the Western Balkans have structural roots: the institutional setup of the labor markets, labor cost factors, and especially the unfinished transition process. Finally, we offer policy recommendations for boosting job creation.
TL;DR: In this paper, the authors investigate the relationship between worker absences and local unemployment rate and find a strong negative association between unemployment and absenteeism rate, larger in magnitude in small firms due presumably to a significantly lower protection from dismissals in these firms.
Abstract: Efficiency wages theories argue that the threat of firing, coupled with a high unemployment rate, is a mechanism that discourages employee shirking in asymmetric information contexts. Our empirical analysis aims to test the role of unemployment as a worker discipline device, considering the different degree of job security offered by the Italian Employment Protection Legislation to workers employed in small and large firms. Controlling for a number of individual and firm characteristics, we investigate the relationship between worker’s absences which act as a proxy for employee shirking and local unemployment rate (at the provincial level). We find a strong negative association between unemployment and absenteeism rate, larger in magnitude in small firms due presumably to a significantly lower protection from dismissals in these firms. As an indirect test of the role of unemployment as worker discipline device, we show that public sector employees, almost impossible to fire, do not react to the local unemployment. J41; M51; J45
TL;DR: In the major European countries, unemployment has increased dramatically over the past two decades and in some of them, including Italy, Spain, and France, increases that were initially cyclical have tended to become structural over time as discussed by the authors.
Abstract: The OECD labor market has undergone major changes over the past two decades. The most evident of these changes is the rise in the number of job-seekers. In 1997, there were more than 35 million people unemployed in the OECD area as a whole, some 6 million more than in the mid-1980s and almost 25 million more than in the early 1970s. These figures hide profound differences across countries. In the major European countries, unemployment has increased dramatically over the past two decades and in some of them, including Italy, Spain, and France, increases that were initially cyclical have tended to become structural over time.
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TL;DR: In this paper, the authors analyzed the determinants and impact of labour market reforms in the European Union over the period of 2000-2011, using the LABthis paper database developed in DG ECFIN of the European Commission in cooperation with the Economic Policy Committee of the ECOFIN Council.
Abstract: This paper analyses the determinants and impact of labour market reforms in the European Union over the period of 2000-2011. The source of information on reforms is the LABREF database developed in DG ECFIN of the European Commission in cooperation with the Economic Policy Committee of the ECOFIN Council. The database collects information on measures adopted by EU Member States. Despite limitations of count data on reform events, the evidence permits a number of interesting insights. The 2008 crisis triggered increased policy activity in most policy domains in a large number of EU countries, in particular in domains with macro-structural relevance (employment protection legislation, unemployment benefits, wage setting). Reforms tend to be more frequently carried out in countries characterised by disappointing labour market outcomes and a high initial level of regulation or fiscal burden on labour. Econometric evidence on the effects of selected reforms on aggregate labour market outcomes is broadly supportive of common priors: tax and benefit reforms tend to be followed, after a time lag, by improved activity rates and lower unemployment.
TL;DR: In this article, a first systematic study of employment protection legislation in the 15 successor states of the USSR over the last two and a half decades is presented, based on new and unique data assembled using OECD methodology.
Abstract: This article is a first systematic study of employment protection legislation in the 15 successor states of the USSR over the last two and a half decades. The analysis is based on new and unique data assembled using OECD methodology. We find that the dynamics of employment protection in the region resemble an inverted U-shaped pattern with the peak of labour market rigidity occurring in the mid-1990s in CIS countries and a decade later in the Baltic states. By now, the former Soviet states as a group are similar to the EU-15 and OECD countries in terms of the overall employment protection legislation index, although they differ in terms of contributions to the overall employment protection legislation of its three major components, namely, regulation of permanent contracts, temporary contracts and collective dismissals.
TL;DR: The benefits of comprehensive policy reforms aimed at increasing labor force participation and youth employment and reducing duality are likely to be considerable in the medium term as mentioned in this paper, and the benefits of these policies are shown in the paper.
Abstract: While the Korean unemployment rates are currently among the lowest in OECD countries, the labor market duality and the underemployment in some segments of the population are important labor market challenges, and factors contributing to lower potential growth. The paper shows the benefits of comprehensive policy reforms aimed at increasing labor force participation and youth employment and reducing duality are likely to be considerable in the medium term.
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TL;DR: In this article, the causal effect of perceived job insecurity on health in a sample of men from 22 European countries was estimated using an original instrumental variable approach based on the idea that workers perceive greater job security in countries where employment is strongly protected by the law, and relatively more so if employed in industries where employment protection legislation is more binding.
Abstract: This paper estimates the causal effect of perceived job insecurity – i.e. the fear of involuntary job loss – on health in a sample of men from 22 European countries. We rely on an original instrumental variable approach based on the idea that workers perceive greater job security in countries where employment is strongly protected by the law, and relatively more so if employed in industries where employment protection legislation is more binding, i.e. in industries with a higher natural rate of dismissals.Using cross-country data from the 2010 European Working Conditions Survey, we show that when the potential endogeneity of job insecurity is not accounted for, the latter appears to deteriorate almost all health outcomes. When tackling the endogeneity issue by estimating an IV model and dealing with potential weak-instrument issues, the health-damaging effect of job insecurity is confirmed for a limited subgroup of health outcomes, namely suffering from headaches or eyestrain and skin problems. As for other health variables, the impact of job insecurity appears to be insignificant at conventional levels.
TL;DR: In this article, the authors show that the composition of work arrangements has significantly changed since the beginning of the 1990s and that non-standard work arrangements such as part-time or temporary employment grew over time, while standard work lost in importance.
Abstract: Since the beginning of the 1990s, the composition of work arrangements has significantly changed. Whereas non-standard work arrangements such as part-time or temporary employment grew over time, standard work lost in importance. However, data from the German Labour Force Survey does—at least for the recent past—not show a clear indication for a much greater speed with respect to changes in the composition of work arrangements. In addition, developments are also driven by a long-term trend. Shift-share-analyses suggest that shifts in the demographic or industry composition of employment were only of minor importance as a driving force for the trend. This means that factors related to the behaviour of the parties involved have obviously played a decisive role. In this context it is important that Germany is a country with regulations creating incentives for an increased use of nonstandard work arrangements. Of relevance in this context are high social security contributions, a considerable level of employment protection, a stronger activation of unemployed due to recent labour market reforms and a still dominant male bread winner model.
TL;DR: In this article, the authors study a search model with employment protection legislation and show that if the output from the match is uncertain ex ante, there may exist a discriminatory equilibrium where workers with the same productive characteristics are subject to different hiring standards.
Abstract: We study a search model with employment protection legislation. We show that if the output from the match is uncertain ex ante, there may exist a discriminatory equilibrium where workers with the same productive characteristics are subject to different hiring standards. If a bad match takes place, discriminated workers will use longer time to find another job, prolonging the costly period for the firm. This makes it less profitable for the firms to hire the discriminated workers, thus sustaining discrimination. In contrast to standard models, the existence of employers with a taste for discrimination may make it more profitable to discriminate also for firms without discriminatory preferences.
TL;DR: In this paper, the authors analyzed differences in individual determinants of the low-wage risk across institutional settings and found that, in contexts with a high degree of bargaining centralization, the relative lowwage risk of entrants and re-entrants from inactivity increases with commodification and deregulation.
Abstract: Taking a cross-national comparative perspective, this study analyses differences in individual determinants of the low-wage risk across institutional settings. It builds on previous research that dealt with the impact of labour market reform measures on the distribution of labour market risks in advanced economies. It is widely held that such reforms have a particularly adverse effect on labour market outsiders, specifically on entrants to the labour market. We seek to differentiate this assumption and to show that this presumed effect is conditional on the configuration of the bargaining system. Using hierarchical models that match EU Statistics on Income and Living Conditions (EU-SILC) microdata with several macro indicators for 20 countries, we find that, in contexts with a high degree of bargaining centralization, the relative low-wage risk of entrants and re-entrants from inactivity increases with commodification and deregulation. If bargaining is decentralized, however, the effects of labour market reform policies on insider/outsider disparities are marginal. Additionally, we show that the same still holds true if a measure of employment protection legislation (EPL) is regarded as the moderating institutional filter. We explain these findings with theoretical concerns based on the concept of closure. These predict that centralized bargaining structures and high EPL (or, rather, closed employment relationships) will systematically channel risks produced by reform measures to the periphery of the labour market.
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TL;DR: In this paper, the authors focus on the consequences of the crisis on job quality in Europe and explore the link between these trends and cyclical as well as institutional factors, and assess the contribution of both individual and country-level characteristics (institutions and business cycle indicators) to a possible deterioration in job quality.
Abstract: This paper focuses on the consequences of the crisis on job quality in Europe. Its aim is twofold: first, to identify trends in job quality in the EU during the 2007-2009 crisis; secondly, to explore the link between these trends and cyclical as well as institutional factors. It relies on European surveys data (European Working Conditions Survey, Labour Force Survey, EU-SILC). A first step of the analysis relies on synthetic indices of job quality developed in previous researches (ETUI Job Quality Index) and compares 2005 and 2010. In average in the EU the aggregate index shows a marginal overall decline in job quality between 2005 and 2010. Improvements are visible with regard to working conditions, working-time and work-life balance. However, involuntary non-standard employment has increased and wages display a pronounced deterioration. Slight declines are also visible in skills and career development and in collective interest representation. At the national level some countries exhibit a more than marginal improvement in overall job quality (Poland, Czech Republic, Belgium and Denmark), whereas others see marked declines in job quality (Ireland and France). A second step builds on dynamic indicators calculated at the individual level. They account for individual transitions in terms of job quality during the trough of the economic downturn (between 2007 and 2009), using EU-SILC panel data. Using multi-level logistic regressions, the paper assesses the contribution of both individual and country-level characteristics (institutions and business-cycle indicators) to a possible deterioration in job quality. It shows that some socio-economic groups are more affected by decreasing trends in job quality (other things being equal), especially youth, older workers and low-educated workers. Women seem less affected by these negative trends than men but are more likely than men to become unemployed or inactive over the period. Cross-country heterogeneity in job quality trends can be related to economic trends (unemployment variation) and, to a minor extent, to the employment distribution by sectors. Some labour market institutions also seem to play a role in explaining the evolution of job quality in times of crisis: employment protection legislation (as defined by the OECD) prevents individual transitions to nonemployment (and has no direct effect on job quality) while public expenditure per unemployed slightly reduces the risk of job quality deterioration.
TL;DR: In this paper, the authors evaluate the effects of the reduction in EPL on labour reallocation and find that the reduction seems to have increased the probability of transitions out of employment.
Abstract: Purpose – Employment law reform enforced in Estonia in mid-2009 provides a good opportunity to examine the outcomes of employment protection legislation (EPL). The purpose of this paper is to evaluate the effects of the reduction in EPL on labour reallocation. Design/methodology/approach – The author exploits the micro-data of the Labour Force Survey to estimate the probabilities of one-year worker flows with probit models, and uses a difference in differences (DID) approach to identify the effects of the EPL reform. Findings – The author finds that the reduction in EPL seems to have increased the probability of transitions out of employment. At the same time, she does not find any significant effect of this reform on the probability of flows into employment. The evaluation also gives evidence of a lowered probability of job-to-job transitions resulting from the reduction in EPL. Research limitations/implications – In this paper, the DID estimation is conducted by using Lithuanians as the control group fo...
TL;DR: In this paper, the authors examined changes in employment protection legislation in Croatia and Central and Eastern European (CEE) countries, as well as in Croatia's main trading partners during the period between 2008 and 2013.
Abstract: According to business climate and competitiveness indicators published by international organisations, Croatia is a country with a rigid labour market and a high level of the legal protection of employees. Given that an Act on Amendments to the Labour Act (OG 73/13) entered into force in Croatia in June 2013, this paper examines changes in employment protection legislation in Croatia and Central and Eastern European (CEE) countries, as well as in Croatia's main trading partners during the period between 2008 and 2013. A cross-country comparison shows a strong downward trend in legal employment protection in most CEE countries during the observed period, primarily as concerns individual dismissal in the cases of regular employment contracts, while in the case of temporary employment the protection strengthened slightly. On the other hand, despite the adoption of amendments to the Labour Act (LA), Croatian labour legislation governing employment protection for regular employment contracts remains relatively inflexible compared to that in other countries.
TL;DR: In this paper, the authors investigate the impact of restrictive labour regulation on a number of economic outcomes and find that more restrictive labour market regulations are detrimental to export propensity, export intensity, investment and employment.
Abstract: Labour market flexibility is an important issue in both development and labour economics. More flexibility in the labour market is believed to facilitate job creation, but also makes it easy for employers to terminate employment contracts and may be in conflict with the notion of decent jobs as promoted by the International Labour Organization and workers' unions. It is therefore not surprising that labour market flexibility or inflexibility has received a lot of attention in the extant literature. Using a sample of about 4700 firms from six African countries, we investigate the impact of restrictive labour regulation on a number of economic outcomes and find that more restrictive labour market regulations are detrimental to export propensity, export intensity, investment and employment. Policy-makers must be cautious, however, when implementing employment regulations as too flexible regulations may benefit employers at the expense of employees.
01 Jan 2014
TL;DR: In this article, the authors look in the broadest terms at how occupational structures have changed across the UK’s European neighbours, and what factors might be driving diverging experiences, considering the importance of educational attainment, unions, employment protection legislation, and minimum wages.
Abstract: Previous SKOPE research has looked at the consequences of changes in the occupational structure of the UK on outcomes such as wage inequality (Holmes and Mayhew 2012) and occupational or earnings mobility (Holmes and Mayhew 2014). This Issues Paper looks in the broadest terms at how occupational structures have changed across the UK’s European neighbours, and what factors might be driving diverging experiences. For this, I consider the importance of educational attainment, unions, employment protection legislation, and minimum wages.
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TL;DR: In this paper, the authors document the appearance of the very first laws, as well as their evolution, in the area of employment protection in France, the UK, Greece, Italy, Spain, and Portugal.
Abstract: In this paper, we document the appearance of the very first laws, as well as their evolution, in the area of employment protection in France, the UK, Greece, Italy,
Spain, and Portugal. By doing so, we reconstruct the series of legal data on employment protection legislation up to the points when information on these
provisions becomes systematically available in other studies or data collections. These first laws are compared and contrasted with current regulations. Developments in the employment protection legislation are also put into a broader picture of worker protection issues, particularly articulating them with the developments on unemployment benefit schemes.
01 Oct 2014
TL;DR: The authors analyzes the legal and actual gaps in working conditions and returns between permanent and temporary contracts, with a focus on civil law contracts, which are at the center of the debate on widening labor market duality in Poland.
Abstract: This paper analyzes the legal and actual gaps in working conditions and returns between permanent and temporary contracts, with a focus on civil law contracts, which are at the center of the debate on widening labor market duality in Poland. We find that net employment creation in recent years occurred largely through involuntary temporary contracts, especially among the low-skilled and young people. Even accounting for workers heterogeneity, we find a persistent wage gap between permanent and temporary contracts, and limited mobility across contract typologies. Insights from qualitative evidence suggest that narrowing duality without hurting the most vulnerable workers will require a reduction in administrative burdens and implicit costs associated with permanent labor contracts, while eliminating firms’ incentives to strictly prefer temporary contracts.
TL;DR: However, recent evidence from transition and emerging economies shows that employment protection legislation tends to raise unemployment among disadvantaged groups, particularly youth, and may increase informal work as discussed by the authors, thus requiring careful consideration of their unintended effects.
Abstract: Employment protection legislation aims to shield employees against unfair dismissal and earning reductions at the time of job loss. Theory suggests that employment protection stabilizes employment over cyclical upturns and downturns without necessarily increasing general unemployment. However, recent evidence from transition and emerging economies shows that employment protection legislation tends to raise unemployment among disadvantaged groups, particularly youth, and may increase informal work. Employment protection policies thus require careful consideration of their unintended effects.
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TL;DR: In this article, a new working paper is intended to map reforms of employment protection law in the member states with the aim of addressing these legal changes in the context of the crisis, but also in the framework of the deregulation agenda of the European Commission.
Abstract: This new working paper is intended to map reforms of employment protection law in the member states with the aim of addressing these legal changes in the context of the crisis, but also in the context of the deregulation agenda of the European Commission.