scholarly journals Employment Protection: Its Effects on Different Skill Groups and on the Incentive to become Skilled

2006 ◽  
Author(s):  
Nikolai Stähler
Keyword(s):  
Employment Protection ◽  
Skill Groups

scholarly journals Employment Protection: Its Effects on Different Skill Groups and on the Incentive to become Skilled

2006 ◽  
Vol 226 (1) ◽  
Author(s):  
Nikolai Stähler
Keyword(s):  
Large Fraction ◽  
Employment Protection ◽  
Unemployment Duration ◽  
Skilled Workers ◽  
Market Outcomes ◽  
Skill Formation ◽  
Ex Ante ◽  
Education Levels ◽  
Skill Groups ◽  
Labour Market Outcomes

SummaryEmployment protection affects labour market outcomes and hence the incentive to acquire skills. Using a matching model with two education levels in which workers decide ex-ante on their skill formation, it is shown that employment protection can raise the fraction of skilled workers. This will be the case if workers obtain a sufficiently large fraction of the rent created by skill formation. Furthermore, it will be shown that high-skilled workers face shorter unemployment duration and lower dismissal probabilities.

Skill-specific unemployment risks: Employment protection and technological progress – A cross-national comparison

2016 ◽  
Vol 26 (5) ◽  
pp. 402-416 ◽  
Author(s):  
Jenny Bennett
Keyword(s):  
Technological Progress ◽  
Labour Force ◽  
Employment Protection ◽  
Skilled Workers ◽  
National Comparison ◽  
Protection Legislation ◽  
Skill Groups ◽  
The Relationship ◽  
Two Sides ◽  
Cross National

This article focuses on the relationship between employment protection legislation (EPL) and skill-specific unemployment risks. As a consequence of skill-biased technological progress, low- and high-skilled workers are expected to be affected differently. Moreover, the level of technological progress should moderate the relation between EPL and skill-specific unemployment risks. The analyses are based on data from the Labour Force Survey from the year 2008 and concentrate on the civilian labour force aged between 25 and 49 years in 20 European countries. The results show that stricter EPL strengthens unemployment risks between skill groups only when the level of technological progress is very advanced. In other countries, stricter EPL is related to less inequality in unemployment risks. However, there are two sides to a coin. While stricter EPL is related to lower unemployment risks for the low skilled in most countries, it leads to higher unemployment rates for the highly skilled at the same time.

The Effects of Employment Protection legislationon Personnel Policies: A Review of Theoretical Modelsand Empirical results

2014 ◽  
pp. 126-140
Author(s):  
O. Mironenko
Keyword(s):  
Personnel Selection ◽  
Selection Criteria ◽  
Theoretical Models ◽  
Employment Protection ◽  
Empirical Results ◽  
Protection Legislation ◽  
Labour Contracts ◽  
Hiring And Firing ◽  
The Impact ◽  
Personnel Policies

Employers incur costs while fulfilling the requirements of employment protection legislation. The article contains a review of the core theoretical models and empirical results concerning the impact of these costs on firms’ practices in hiring, firing, training and remuneration. Overall, if wages are flexible or enforcement is weak, employment protection does not significantly influence employers’ behavior. Otherwise, stringent employment protection results in the reduction of hiring and firing rates, changes in personnel selection criteria, types of labour contracts and dismissal procedures, and, in some cases, it may lead to the growth of wages and firms’ investments to human capital.

scholarly journals The Role of Employment Protection during an Exogenous Shock to an Economy

2011 ◽  
Vol 11 (2) ◽  
pp. 1850225 ◽  
Author(s):  
Miki Malul ◽  
Mosi Rosenboim ◽  
Tal Shavit ◽  
Shlomo Yedidia Tarba
Keyword(s):  
Economic Crisis ◽  
Employment Protection ◽  
Exogenous Shock ◽  
Unemployment Rates ◽  
World Crisis ◽  
Automatic Stabilizer ◽  
Medium Level ◽  
Using Data ◽  
The Stability

This paper explores the role of employment protection when powerful external crises reduce demand for products. We first present a theoretical framework that shows that employment protection has a U-shaped effect on abnormal unemployment during a negative exogenous shock to an economy. Using data from the 33 OECD countries, we analyze how the level of employment protection affected the stability of unemployment rates during the recent global economic crisis. The results suggest that countries with an intermediate level of employment protection will have more stable unemployment rates during a world crisis. The policy implication of our paper is that countries should seek a medium level of employment protection that may act as an automatic stabilizer of the economy on the macro level.

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