The effect of employment protection legislation on international trade

2021 ◽  
Vol 94 ◽  
pp. 221-234
Author(s):  
Jayjit Roy
Author(s):  
Samir Amine ◽  
Wilner Predelus

The merit of employment regulations in a market economy is often measured by their effectiveness in facilitating job creation without jeopardizing the notion of “decent work,” as defined by the International Labor Organization (ILO). Consequently, the recent literature on employment legislation has extensively focused on the flexibility of the labor market, as a fair middle ground is always necessary to avoid undue distortions that can negatively impact the economy and worker's wellbeing. This chapter analyzes the provisions of the labor law in Haiti and how it affects job security and flexibility to observe a flexible structure that rather benefits employers. Notably, labor law in Haiti may have in fact rendered workers more vulnerable because these labor legislations were enacted on the assumption that employers and workers are on the same footing when it comes to industrial relations, while historic facts do not support such an assumption.


2019 ◽  
pp. 0143831X1985641 ◽  
Author(s):  
Mark Harcourt ◽  
Gregor Gall ◽  
Arjun Sree Raman ◽  
Helen Lam ◽  
Richard Croucher

Key EU agencies have successfully urged member states to scale back employment protection legislation as a solution to unemployment. The economic arguments for this reform are mixed, with recent empirical evidence largely unsupportive. Critics have also raised doubts about the accuracy of the OECD’s Employment Protection Legislation Index, which is the principal method EU agencies use to target so-called high-protection regimes. This article supplements existing criticisms of the OECD index by arguing that it fails to account for procedural requirements in assessing the difficulties and costs of carrying out individual dismissals. Evidence from New Zealand, ostensibly a low-protection country, demonstrates procedural requirements can pose the main impediments to carrying out individual dismissals. This suggests the need for revision of the OECD Employment Protection Legislation Index or the use of other indices instead.


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